Bitcoin price is gaining pace above $20,000 against the US Dollar. BTC is showing positive signs and might rise further towards $22,000 or even $25,000.
- Bitcoin is gaining pace above the $20,000 and $20,500 resistance levels.
- The price is trading above $20,000 and the 100 hourly simple moving average.
- There is a major contracting triangle forming with resistance near $20,820 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could rally again if there is a clear move above the $21,200 resistance.
Bitcoin Price Remains In Uptrend
Bitcoin price started a fresh increase above the $19,650 and $20,000 resistance levels. BTC bulls were able to push the price into a positive zone above the $20,200 level.
Yesterday, we saw a bullish continuation pattern with resistance at $20,300. The price did move higher and cleared the $20,300 resistance. It even cleared the $20,500 resistance and settled well above the 100 hourly simple moving average.
A high was formed near $21,021 and the price is now consolidating gains. There was a minor decline below the $20,800 level. Bitcoin price dipped below the 23.6% Fib retracement level of the upward move from the $19,992 swing low to $21,021 high.
It is now trading above $20,000 and the 100 hourly simple moving average. There is also a major contracting triangle forming with resistance near $20,820 on the hourly chart of the BTC/USD pair.
Source: BTCUSD on TradingView.com
On the upside, an immediate resistance is near the $20,800 zone. The first major resistance sits near the $21,000 level. The next major resistance might be $21,200. A clear move above the $21,200 resistance might send the price towards the $22,000 resistance. Any more gains open the doors for a steady increase towards the $25,000 resistance zone.
Downside Correction in BTC?
If bitcoin fails to rise above the $21,200 resistance zone, it could start a downside correction. An immediate support on the downside is near the $20,700 zone.
The next major support is near the $20,500 zone. It is near the 50% Fib retracement level of the upward move from the $19,992 swing low to $21,021 high. A downside break and close below $20,500 might clear the path for a test of the $20,000 zone.
Technical indicators:
Hourly MACD – The MACD is now gaining pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well above the 50 level.
Major Support Levels – $20,700, followed by $20,500.
Major Resistance Levels – $20,820, $21,200 and $22,000.
Aayush Jindal
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