Bitcoin is showing positive signals above the $21,000 zone. According to technical analysis by NewsBTC’s Aayush Jindal, Bitcoin could start a fresh rise and even clear the $21,750 resistance zone.
Bitcoin Continues to Find Support
Bitcoin settled nicely above the $21,000 level and the 100 hourly simple moving average. On the other hand, the bears were active near the $21,700 and $21,750 levels. A top was formed near $21,780 and the price started a downside correction.
Bitcoin broke below the 23.6% Fib retracement level of the upward move from the $19,750 high to $21,780 high. There was also a break below a key bullish trend line with support near $21,300 on the hourly chart of the BTC/USD pair. Then he managed to get some of his gains back.
The next key resistance is near the $21,750 level. A clear move above the $21,750 level could start a decent uptrend. In the indicated case, the price could climb above the $22,200 level. Any further gains could lead the price towards the $23,000 resistance zone.
Will Bitcoin Drop Again?
Jindal says that if Bitcoin fails to break through the $21,750 resistance zone, it could start another decline. An immediate support on the downside is near the $21,000 level and the 100 hourly SMA. The first major support is near the $20,750 level. This is near the 50% Fib retracement level of the upward move from the $19,750 low to $21,780 high. A downside break below the $20,750 support could put a lot of pressure on the bulls in the near term. In the stated case, the price could slide towards the $20,000 level.
What Are Technical Indicators Saying?
- Hourly MACD – The MACD is now gaining momentum in the bullish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently just below the 50 level.
- Major Support Levels – $21,000 then $20,750
- Major Resistance Levels – 21,250, 21,750 and $23,000
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