Bitcoin Recovers Sharply, Why BTC Could Still Struggle Above $20,500

Bitcoin declined in direction of the $18,500 assist zone towards the US Greenback. BTC recovered sharply, however the bears are nonetheless energetic close to the $20,500 and $20,650 ranges.

• Bitcoin climbed greater sharply after there was a check of the $18,500 zone.
• The value is now buying and selling above the $20,000 stage and close to the 100 hourly easy shifting common.
• There’s a main bearish pattern line forming with resistance close to $20,400 on the hourly chart of the BTC/USD pair (information feed from Kraken).
• The pair might begin a recent decline except there’s a transfer above the $20,500 resistance zone.

Bitcoin Value Eyes Upside Break

Bitcoin worth began one other decline under the $20,000 assist zone. The value even traded under the $19,200 assist zone and spiked under the $18,800 stage.

There was a check of the $18,600 zone and the worth traded as little as $18,617. Not too long ago, there was a pointy upward transfer and the worth climbed above the $19,500 resistance. There was a transfer above the 50% Fib retracement stage of the important thing drop from the $21,697 swing excessive to $18,617 low.

Nonetheless, the worth is now going through a powerful resistance close to the $20,500 zone and the 100 hourly easy shifting common. There’s additionally a significant bearish pattern line forming with resistance close to $20,400 on the hourly chart of the BTC/USD pair.

The pattern line is near the 61.8% Fib retracement stage of the important thing drop from the $21,697 swing excessive to $18,617 low. A direct resistance on the upside is close to the $20,500 stage.

Supply: BTCUSD on TradingView.com

The following key resistance is close to the $20,950 zone. A transparent transfer above the pattern line resistance after which $20,950 might push the worth additional greater. Within the acknowledged case, the worth might rise in direction of the $21,650 stage. The following main resistance sits close to the $22,500 stage.

Recent Decline in BTC?

If bitcoin fails to clear the $20,500 resistance zone, it might begin one other decline. A direct assist on the draw back is close to the $20,000 stage.

The following main assist now sits close to the $19,800 stage, under which the worth might decline closely. Within the acknowledged case, the worth might maybe decline in direction of the $18,500 stage.

Technical indicators:

Hourly MACD – The MACD is now gaining tempo within the bullish zone.

Hourly RSI (Relative Power Index) – The RSI for BTC/USD is now above the 50 stage.

Main Assist Ranges – $20,000, adopted by $19,800.

Main Resistance Ranges – $20,500, $20,950 and $21,650.