13:05TA: Why Bitcoin Must Clear $19.3K To Start A Fresh Rally Towards $20K
Bitcoin is currently holding the $18,800 and $19,000 support levels.
Bitcoin Price is Stuck In Range
Yesterday, we discussed the importance of the 100 hourly simple moving average and $18,800 for bitcoin price. BTC did find a strong support near the 100 hourly simple moving average and there was no downside break below the $18,500 support.
The price seems to be trading in a broad range above the $18,500 and $18,800 support. The last swing low was formed near $18,117 before the price climbed above the 50% Fib retracement level of the key downward move from the $19,957 swing high to $18,117 swing low.
The price is now facing a major resistance near $19,300, but it is above the 100 hourly simple moving average. It seems like there is a major contracting triangle forming with resistance near $19,300 on the hourly chart of the BTC/USD pair.
Source: BTCUSD on TradingView.com
Therefore, a close above the triangle resistance and $19,320 could open the doors for a larger increase. The next key resistance is near the $19,500, above which bitcoin might test the $20,000 zone.
Downside Break in BTC?
If bitcoin fails to clear the $19,300 resistance level, there is a risk of a downside break. An initial support is near the triangle lower trend line at $18,800 and the 100 hourly simple moving average.
A downside break below the $18,800 support level could push the price towards $18,500. Any more losses may possibly spark a sharp decline towards the $18,000 level.
Hourly MACD – The MACD is slowly gaining momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently just above the 50 level.
Major Support Levels – $18,800, followed by $18,500.
Major Resistance Levels – $19,300, $19,500 and $19,800.
|Total comments: 0|
|Buying the Bitcoin Dip: MicroStrategy Scoops $10M Worth of BTC Following $7K Daily Crash (0)|
|MicroStrategy buys the Bitcoin dip worth $10 million (0)|
|Bitcoin is unlikely to replace gold as a risk diversifier – DBS Bank (0)|
|Demand for Bitcoin Miners Pressures Chip Makers Amid Global Shortage (0)|
|OKCoin to Integrate Bitcoin’s Lightning Network in Q1 (0)|
|Bitcoin's biggest mining pool may be behind the BTC price drop, but buyers stepped in (0)|
|Grayscale Acquires $1,276,147,151 in Bitcoin in Single Week (0)|
|Hive Blockchain Buys 6,400 Bitcoin Miners From Canaan, Capacity Reaches 1,229 PH/s (0)|
|Biden names new SEC and CFTC administration – curse or blessing for Bitcoin? (0)|
|Learn the basics of Bitcoin with some help from a pro (0)|