Bitcoin is consolidating its position near $20,000 and if it can break through the $20,550 resistance in the coming hours, it will open the way for a strong bullish correction to begin.
To GazaRSh BTC News, Bitcoin started a new uptrend yesterday by breaking through the $20,000 resistance and breaking through the $20,200 resistance and the 100 hourly simple moving average (MA 100 – red line in the picture).
This move was accompanied by the passage of Bitcoin over $20,500 and the buyers’ efforts to raise the price finally stopped at $20,576. After that, the price quickly fell below the $20,000 level and the 100 hourly simple moving average.
Following this drop, Bitcoin’s cross-sectional floor was formed at $19,555, after which the price started to rise again. The re-growth of the price was accompanied by Bitcoin crossing the 50% Fibonacci retracement level. It should be mentioned that in this analysis Fibonacci levels are set based on the downward movement of the price from $20,576 to the bottom of $19,555.
Bitcoin is currently trading above $20,000 and the 100-hour simple moving average, and the closest resistance is the $20,340 price level, which is in the same zone as the downtrend line resistance on the chart and the 76.4% Fibonacci retracement level.
The next key resistance is at $20,550. The crossing and closing of the price candle above this level can lead to a jump of Bitcoin up to $21,000. The continuation of the upward trend will increase the chance of Bitcoin reaching $22,000.
Conversely, if Bitcoin fails to break through the $20,550 resistance, another bearish move is likely to begin in the market. In this case, the nearest price support is at $20,000.
The next key support will be $19,780, followed by $19,550. The continuation of the downward trend will bring Bitcoin below $19,500.
The MACD is leaving the bearish range and the Relative Strength Index (RSI) is above the middle axis at the 50 level.
As mentioned, $19,780 and $19,500 are key supports for Bitcoin, and $20,340, $20,550, and $21,000 are acting as resistances.