Bitcoin price looks poised for a strong surge above $21K


Bitcoin is moving higher and trading above the USD 20,000 zone against the US dollar. BTC could rise if there is a clear move above USD 20,580 and USD 20,730.

Bitcoin is showing some positive signs above the USD 20,000 support zone. The price is now trading above the $20,000 level and the 100 hourly simple moving average. A major bullish trendline is forming with support near $19,800 on the hourly chart of the BTC/USD pair (Kraken data feed). The pair could start strong upward movement if it closes above the USD 20,580 level.

Bitcoin Price Aims For New Rise

Bitcoin price remained well above the $19,500 support zone. BTC bottomed out near the $19,750 level and started a fresh rise above the $20,000 resistance zone.

There was steady movement and the price climbed above the 50% Fib retracement level of the downward move from the $20,732 swing high to $19,750 low. The price is now trading above the $20,000 level and the 100 hourly simple moving average.

A major bullish trendline is also forming with support near $19,800 on the hourly chart of the BTC/USD pair. Bitcoin price is now trading comfortably near the $20,500 zone and the 76.4% Fib retracement level from the downward move from the $20,732 swing high to $19,750 low.

Source: BTCUSD on TradingView.com

On the upside, the price is facing resistance near the USD 20,550 and USD 20,580 levels. The next key resistance is near the USD 20,730 zone. A close above the $20,730 resistance zone could open the doors for a strong gain. In the mentioned case, the price could rise towards the $21,500 level. The next major resistance is near the USD 22,200 level.

New decline in BTC?

If bitcoin fails to clear the USD 20,730 resistance zone, it could initiate a downside correction. An immediate support on the downside is near the USD 20,200 level.

The next major support is now near the $19,800 level or the trendline zone. A close below the $19,800 support zone could push the price towards $19,500. In the mentioned case, there is a risk of a move towards the $18,750 level.

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 above the 50 level.

Key support levels – $20,200, followed by $19,800.

Major resistance levels – $20,580, $20,730 and $21,200.

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