Bitcoin price faces resistance near the $21,500 zone. BTC could correct lower if there is a clear move below the $20,880 support zone.
- Bitcoin seems to be facing strong resistance near the $21,450 and $21,500 levels.
- The price is trading above $20,500 and the hourly moving average is 100.
- There is a key bullish trend line formed with support near $20,920 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could start a downward correction below the $20,880 and $20,750 support levels.
Bitcoin Price Faces Resistance
Bitcoin price started to rise strongly above the $20,000 resistance zone. BTC could rise above $20,500 and $21,000 to start a major uptrend.
Finally, the price tested the $21,500 resistance zone. A high formed near $21,485 and the price is now consolidating gains. There was a small decline below the $21,200 level. The price declined below the 23.6% Fib retracement level of the upward wave from the $20,249 swing to the $21,489 high.
Bitcoin price is currently trading above $20,500 and the hourly simple moving average is 100. There is also a key bullish trend line formed with support near $20,920 on the hourly chart of the BTC/USD pair.
Source: BTCUSD on TradingView.com
On the upside, immediate resistance is near the $21,250 level. The next major resistance is close to the $21,500 zone, above which the price may increase again. In that case, the price may rise to the $22,000 level. Another gain could send the btc price to the $22,500 level.
Downside Correction in BTC?
If the price of bitcoin fails to clear the $21,500 resistance, it could slow down. The immediate support at the bottom is near the $21,000 zone and the trend line.
The next major support is near the $20,720 level. It is near the 61.8% Fib retracement level of the upward wave from the $20,249 swing low to the $21,489 high. The main support is now near the $20,500 level, below which the price may retest the $20,000 level. Any other loss can send the price to $19,000.
Technical indicators:
Hourly MACD – MACD is currently losing in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently above the 50 level.
Key Support Level – $20,720, followed by $20,500.
Key Resistance Levels – $21,250, $21,500 and $22,000.