Before turning around its losses against the U.S. Dollar, the bitcoin price traded at a new weekly low. BTC crossed the $19,500 mark and might surge much higher to $20,500. The $19,500 resistance level was moved over, and Bitcoin is now up almost 5%. The price is trading above the 100 hourly simple moving average and $19,500.On the hourly chart of the BTC/USD pair, there was a break over a significant negative trend line with resistance close to $19,150. Bullish indicators are present in the pair, and gains may exceed $20,000 in the future.
Price of Bitcoin Starts a New Rally
Below the $19,000 level of support, the price of bitcoin (1) continued to decline. The US CPI data (2), which showed an increase of 8.2% yesterday, was made public. The BTC price was driven below the $18,500 support region. As the bears gathered momentum, the stock plunged to the $18,200 support area. The bears, however, were unable to drop the price anymore. Near $18,142, a low was made, and there was a significant bullish response. Price began to go upward and surpassed the $19,000 mark.
The price of bitcoin surpassed the 50% Fibonacci retracement level of the decline from the swing high of $20,443 to the low of $18,142. On the BTC/USD hourly chart (3), there was a break over a significant negative trend line with a resistance of approximately $19,150. Currently, the price is trading over $19,500 and the 100 hourly simple moving average. It is currently trading close to the 76.4% Fibonacci retracement level of the decline from the swing high of $20,443 to the low of $18,142.
Near the $20,000 mark, there is immediate resistance on the upside. Price increases may be possible if there is a clear break over the $20,000 resistance level. Near $20,450 is where the next significant barrier is located. Any further gains might trigger a gradual ascent in the direction of the $21,200 resistance region.
Support for Dips in Bitcoin
Bitcoin may start a downward correction if it cannot break the $20,000 barrier. On the downside, there is near-immediate support around the $19,500 region. The next significant support Daily SMA is near the $19,200 area and the 100-point level. Selling pressure might intensify if the price drops below the $19,200 support level. In this scenario above, the price may fall, approaching the $18,500 support region. Some of the Technical signs are as follows :
(a) The MACD is now advancing in a positive area.
(b) The relative Strength Index (RSI) for BTC/USD hourly is now overbought.
(c) $19,500 were Major Support Levels, which then became $19,200.
(d) $20,000, $20,450, and $21,200 are the three major resistance levels.
