Bitcoin price has started declining below $20,500 against the US Dollar. If BTC clears the 100 hourly SMA and then $21,000, BTC could start a fresh rally.
- Bitcoin is recovering losses from the $20,250 support area.
- The price is trading below $20,700 and the 100 hourly simple moving average.
- There is a major bearish trend line forming with resistance near $20,680 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- If it clears the 100 hourly SMA, and then $21,000, the pair may begin another upward move.
bitcoin price remains supported
Bitcoin price started a decline after it failed to cross the $21,000 resistance area. BTC declined below the $20,600 and $20,500 levels.
The decline was gaining momentum below the $20,500 level and the 100 hourly simple moving average. However, the bulls were active near the $20,250 level. A low was formed near $20,250 and the price started an upward move. There was a wave above the $20,400 and $20,500 levels.
Bitcoin price climbed above the 23.6% Fib retracement level of the decline from the $21,074 high to $20,250 low. On an upside, immediate resistance is near the $20,600 area and the 100 hourly simple moving average.
The first major resistance is near the $20,700 level. There is also a major bearish trend line forming with resistance near $20,680 on the hourly chart of the BTC/USD pair. There is a trend line near the 50% Fib retracement level of the downside bias from the $21,074 high to $20,250 low.
Source: BTCUSD on TradingView.com
The next major resistance is still near the $21,000 level. A clear move above the $21,000 resistance could start a fresh rally. In the specified case, the price is likely to move towards the $22,500 resistance area.
More Downsides in BTC?
If bitcoin fails to rise above the $20,700 resistance area, it could start another downside move. On the downside, immediate support is near the $20,400 area.
The next major support is near the $20,250 area. The main support is at $20,000, below which there is a risk of a major decline. In this case, the price could decline towards the $19,200 level.
Hourly MACD – The MACD is now gaining momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Key Support Level – $20,400, followed by $20,250.
Major resistance levels – $20,600, $20,700 and $21,000.