Bitcoin price is facing resistance near the $21,500 area. BTC might correct lower if there is a clear move below the $20,880 support zone.
- Bitcoin appears to be facing strong resistance near the $21,450 and $21,500 levels.
- The price is trading above $20,500 and the 100 hourly simple moving average.
- A key bullish trend line is forming with support near $20,920 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair might start a downward correction below the $20,880 and $20,750 support levels.
Bitcoin price faces resistance
Bitcoin price started a sharp rise above the $20,000 resistance zone. BTC was able to climb above the $20,500 and $21,000 levels to initiate a major uptrend.
Finally, the price tested the $21,500 resistance zone. A high is formed near $21,485 and the price is now consolidating its gains. There was a slight decline below the $21,200 level. The price fell below the 23.6% Fib retracement level of the uptrend from the low of $20,249 to $21,489.
Bitcoin price is now trading above $20,500 and the 100 hour simple moving average. There is also a key bullish trend line forming with support near $20,920 on the hourly chart of the BTC/USD pair.
Source: BTCUSD on TradingView.com
On the upside, an immediate resistance is near the $21,250 level. The next major resistance is near the $21,500 area, above which the price may begin another steady rise. In the indicated case, the price could possibly rise towards the $22,000 level. Any further gains could send the btc price towards the $22,500 level.
Downside correction in BTC?
If bitcoin price fails to clear the $21,500 resistance, it could slowly decline. Immediate support on the downside is near the $21,000 area and the trendline.
The next major support is near the $20,720 level. It is near the 61.8% Fib retracement level of the uptrend from the $20,249 low to $21,489 high. The main support is now forming near the $20,500 level, below which the price may retest $20,000. Any further losses could push the price up to $19,000.
Technical indicators:
Hourly MACD – The MACD is now losing momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Main support levels – $20,720, followed by $20,500.
Main resistance levels – $21,250, $21,500 and $22,000.
