Bitcoin Price Is Forming A Key Trend and Swift Rally Could Occur
Bitcoin price is moving higher above $19,250 against the US Dollar. BTC could eye a crucial upside break above the $19,500 and $19,650 resistance levels.
- Bitcoin started a fresh increase above the $19,200 and $19,250 levels.
- The price is trading above $19,200 and the 100 hourly simple moving average.
- There was a break above a key bearish trend line with resistance near $19,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could start a strong increase if there is a clear move above the $19,650 resistance.
Bitcoin Price Gains Momentum
Bitcoin price remained well bid above the $18,800 level. BTC formed a base above the $19,000 level and started a fresh increase. There was a clear move above the $19,200 and $19,250 resistance levels.
There was also a break above a key bearish trend line with resistance near $19,200 on the hourly chart of the BTC/USD pair. The pair gained pace above the $19,400 level and the 100 hourly simple moving average. It even broke the $19,500 resistance.
However, bitcoin price failed to gain momentum above the $19,600 zone. A high was formed near $19,679 and there was a minor downside correction.
The price is now trading below the 23.6% Fib retracement level of the upward move from the $18,865 swing low to $19,679 high. On the upside, an immediate resistance is near the $19,600 level. The first major resistance sits near the $19,650 level and the recent high.
Source: BTCUSD on TradingView.com
The next major resistance might be $20,000. A clear move above the $20,000 resistance might send the price towards the $20,500 resistance. Any more gains might open the doors for a move towards the $21,200 resistance zone.
Dips Supported in BTC?
If bitcoin fails to rise above the $19,600 resistance zone, it could continue to move down. An immediate support on the downside is near the $19,300 zone.
The next major support is near the $19,250 zone. It is close to the 50% Fib retracement level of the upward move from the $18,865 swing low to $19,679 high. A downside break and close below $19,250 might increase selling pressure and the price might revisit $18,800.
Hourly MACD – The MACD is now losing pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Major Support Levels – $19,300, followed by $19,250.
Major Resistance Levels – $19,500, $19,600 and $20,000.