Bitcoin is consolidating near the $20,000 zone against the US Dollar. BTC could start a decent recovery wave if it clears the $20,550 resistance zone.
- Bitcoin is showing a few positive signs above the $20,000 resistance.
- The price is now trading above the $20,000 level and the 100 hourly simple moving average.
- There is a connecting bearish trend line forming with resistance near $20,340 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair must clear the $20,340 zone and $20,550 to start a steady increase.
Bitcoin Price Struggles
Bitcoin price started a minor upside correction above the $20,000 resistance zone. BTC even cleared the $20,200 resistance zone and the 100 hourly simple moving average.
It spiked above the $20,500 level but the bulls struggled to push the price further higher. A high was formed near $20,576 before there was a bearish reaction. The price declined sharply below the $20,000 level and the 100 hourly simple moving average.
However, it stayed above the $19,500 support zone. A low is formed near $19,555 and the price is now rising. There was a move above the 50% Fib retracement level of the recent decline from the $20,576 swing high to $19,555 low. Bitcoin is now trading above the $20,000 level and the 100 hourly simple moving average. On the upside, an immediate resistance is near the $20,340 level. There is also a connecting bearish trend line forming with resistance near $20,340 on the hourly chart of the BTC/USD pair. The trend line is near the 76.4% Fib retracement level of the recent decline from the $20,576 swing high to $19,555 low.
Source:The next major resistance sits near the $20,550 level. A clear move above the $20,550 resistance might send the price towards $21,000. Any more gains might send the price towards the $22,000 resistance zone.