Bitcoin is struggling to stabilize above $20,500 against the US Dollar. BTC could drop sharply if there is a clear move below the $19,500 support area.
- Bitcoin is stuck near the $20,000 area and is trading below the $20,500 resistance level.
- The price is now trading below the $20,000 level and the 100 hourly simple moving average.
- There is a short term bullish channel forming with support near $19,750 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could accelerate lower if there is a clear move below the $19,600 and $19,500 levels.
Bitcoin price stays in a range
Bitcoin price is trading in a range below the $20,500 and $20,550 resistance levels. BTC on several occasions failed to clear the $20,500 resistance area.
Meanwhile, the bulls were active above the $19,500 support area. The last bottom formed near $19,600 and the price is now moving higher in the range. There was a slight increase above the $19,750 resistance area. The price rose above the 23.6% Fib retracement level of the recent decline from the $20,397 high to $19,600.
Bitcoin price is now trading below the $20,000 level and the 100 hourly simple moving average. There is also a short term ascending channel forming with support near $19,750 on the hourly chart of the BTC/USD pair.
On the upside, there is immediate resistance near the $19,900 level and the 100 hourly simple moving average. The next major resistance is near the $20,000 level. It is close to the 50% Fib retracement level of the recent decline from the $20,397 high to $19,600.
Source: BTCUSD on TradingView.com
A clear move above the $20,000 resistance could send the price towards $20,500. Any further gains could start a steady move towards the $21,200 resistance area.
Breaking the downside in bitcoin?
If Bitcoin fails to clear the $20,500 resistance area, it may start dropping again. There is immediate support to the downside near the $19,750 region.
The next major support is near the $19,600 level. The main support is near the $19,500 level. A break below the $19,500 support level could trigger a sharp drop towards $18,800. Any further losses may require a move to $18,500 in the near term.
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.
Key support levels – 19,750 USD, followed by 19,500 USD.
Key resistance levels – $20,000, $20,350, and $20,500.