Bitcoin is struggling near the $21,000 resistance zone. According to technical analysis by NewsBTC’s Aaayush Jindal, BTC could rally if it surpasses the $20,900 and $21,000 resistance levels.
Bitcoin Targets Upward Movement
Bitcoin started an upside correction after falling as low as $17,600 over the weekend. There was a decent recovery wave formed above the $18,500 and $19,000 levels. The price surpassed the 50% Fib retracement level of the drop from the $22.951 low to $17,600 low. It even surpassed the $20,000 level and the 100 hourly simple moving average. There is also a connecting bullish trend line forming with support near $20,275 on the hourly chart of the BTC/USD pair.
Bitcoin is also struggling near the 61.8% Fib retracement level of the main drop from the $22.951 high to $17,600 low. An immediate resistance is near the $20,800 level. The first major resistance is near the $20,900 and $21,000 levels. A clear move above the $21,000 level could push the price towards $21,800. Any further gains could send the price towards the $22,200 level in the coming sessions.
Will Bitcoin Drop Again?
Jindal says that if Bitcoin fails to break past the $21,000 resistance zone, it could start a fresh decline. An immediate support is near the $20,275 level and the trend line. The next major support is near the $20,000 level and the 100 hourly SMA. A downside break below the $20,000 support could trigger another decline. In the stated case, the price could test $18,800.
What Are Technical Indicators Saying?
- Hourly MACD – The MACD is now losing momentum in the bullish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
- Major Support Levels – $20,275 followed by $20,000
- Major Resistance Levels – $20,900, $21,000, and $22,000
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