Bitcoin started an upside correction from the $17,600 zone. According to technical analysis by NewsBTC’s Aayush Jindal, BTC is currently facing strong resistance near $20,500 and $21,000.
Bitcoin Targets Recovery
Bitcoin declined sharply below the $20,000 support zone over the weekend. It is down over 10% and even settled below the $18,000 level. A low was formed near $17,600 before the price started an upside correction.
Thereafter, there was a recovery wave above the $18,000 and $18,500 resistance levels. Besides, there was a break above a key bearish trend line with resistance near $19,200 on the hourly chart of the BTC/USD pair. Bitcoin climbed above the 50% Fib retracement level of the decline from the $22,950 high to $17,600 low. The price even climbed above $20,000 and the 100 hourly simple moving average.
However, the bears were active near the $20,500 and $20,750 levels. The 61.8% Fib retracement level of the drop from the $22,950 high to $17,600 low also acted as a resistance. The price is now trading below the $20,000 level and the 100 hourly simple moving average.
An immediate resistance is near the $20,200 level. The first major resistance is near the $20,500 level. Any further gains could send the price towards the $21,000 level. A close above the $21,000 level could set the pace for a larger rise.
Will Bitcoin Drop Again?
Jindal says that if Bitcoin fails to break past the $20,500 resistance zone, it could start a fresh decline. An immediate support is near the $19,500 level. The next major support is near the $18,800 level. A downside break below the $18,800 support could lead to a steep decline. In the indicated case, the price could test $17,600.
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 just above the 50 level.
- Major Support Levels – $19,500 then $18,800
- Major Resistance Levels – $20,200, $20,500 and $21,000
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