Bitcoin price is attempting a new rally above the $21,200 resistance zone. BTC could gain bullish momentum if there is a clear move above the $21,500 resistance.
- Bitcoin corrected lower but found support near the $20,500 zones.
- The price is trading above $21,000 and the 100 hourly simple moving average.
- A key short-term bullish trendline is forming with support near $21,050 on the hourly chart of the BTC/USD pair (data source from Kraken).
- The pair could start a new uptrend if there is a clear move above the $21,500 resistance zone.
Bitcoin price remains supported
Bitcoin price started a downward correction from the $21,500 resistance zone. BTC dropped below the $21,000 support zone, similar to the ethereum.
However, the bulls were active near the $20,500 and $20,400 support levels. A low is forming near $20,395 and the price is now rising. There was a clear move above the $20,850 resistance zone. The bulls pushed the price above the 50% Fib retracement level of the recent decline from the $21,639 swing high to $20,395.
Bitcoin price is now trading above $21,000 and 100 hour simple moving average. A key short-term bullish trendline is also forming on the hourly chart of the BTC/USD pair with support near $21,050.
Immediate resistance is near the $21,160 level. It is near the 61.8% Fib retracement level of the recent decline from the $21,639 swing high to $20,395. Another major resistance is near the $21,500 zone, above which the price could gain bullish momentum.
Source: BTCUSD on TradingView.com
In this case, the price can increase up to the level of $22,000. Any further gains could send the BTC price towards the $22,500 level.
Another BTC decline?
If the Bitcoin price fails to clear the $21,250 resistance, it could start a new downtrend. Immediate downside support is near the $21,050 zone and the trend line.
Another major support is near the $20,500 zone, below which the price could gain bearish momentum and test $20,000. Any further losses could send the price to $19,500 in the near term.
Technical indicators:
Hourly MACD – MACD is now losing momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – RSI for BTC/USD is now above the 50 level.
Major support levels – $20,500, followed by $20,000.
Major resistance levels – $21,160, $21,250 and $21,500.
