Bitcoin is showing positive signals above the $20,500 zone. According to technical analysis by NewsBTC’s Aayush Jindal, BTC could rally if there is a clear move above the $21,250 resistance zone.
Bitcoin Could Gain Speed
Bitcoin started a new rise after falling to around $19,750. BTC managed to clear the $20,000 and $20,500 resistance levels and there was also a break above a major bearish trend line with resistance near $20,450 on the hourly chart of the BTC/USD pair. The pair climbed above the 50% Fib retracement level of the downside move from the $21,698 low to $19,750 high.
An immediate resistance is near the $21,250 level. This is close to the 76.4% Fib retracement level of the downside move from the $21,698 low to $19,750 high. The next key resistance is near the $21,650 level. A clear move above the $21,650 level could start a decent uptrend. The next major resistance is near the $22,200 level, above which the bulls might gain strength for a move towards the $23,000 resistance area.
Will Bitcoin Drop Again?
Jindal says that if Bitcoin fails to break past the $21,250 resistance zone, it could start another decline. According to him, an immediate support is near the $20,600 level and the 100 hourly SMA. The first major support is near the $20,000 level. The main support is currently near the $19,750 level. A downside break below the $19,750 support could put a lot of pressure on the bulls in the near term. In the stated case, the price could slide towards the $18,500 level.
What Are Technical Indicators Saying?
- Hourly MACD – The MACD is now gaining momentum in the bullish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
- Major Support Levels – $20,000 then $20,000
- Major Resistance Levels – 21,250, 21,650 and $23,000
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