TA: Bitcoin Price Correction To $22k On Horizon After Bears Lose Control At $20k

Bitcoin is consolidating near the $20,000 zone against the US Dollar. BTC could start a decent recovery wave if it clears the $20,550 resistance zone.

• Bitcoin is showing a few positive signs above the $20,000 resistance.
• The price is now trading above the $20,000 level and the 100 hourly simple moving average.
• There is a connecting bearish trend line forming with resistance near $20,340 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair must clear the $20,340 zone and $20,550 to start a steady increase.

Bitcoin Price Struggles

Bitcoin price started a minor upside correction above the $20,000 resistance zone. BTC even cleared the $20,200 resistance zone and the 100 hourly simple moving average.

It spiked above the $20,500 level but the bulls struggled to push the price further higher. A high was formed near $20,576 before there was a bearish reaction. The price declined sharply below the $20,000 level and the 100 hourly simple moving average.

However, it stayed above the $19,500 support zone. A low is formed near $19,555 and the price is now rising. There was a move above the 50% Fib retracement level of the recent decline from the $20,576 swing high to $19,555 low.

Bitcoin is now trading above the $20,000 level and the 100 hourly simple moving average. On the upside, an immediate resistance is near the $20,340 level.

There is also a connecting bearish trend line forming with resistance near $20,340 on the hourly chart of the BTC/USD pair. The trend line is near the 76.4% Fib retracement level of the recent decline from the $20,576 swing high to $19,555 low.

Source: BTCUSD on TradingView.com

The next major resistance sits near the $20,550 level. A clear move above the $20,550 resistance might send the price towards $21,000. Any more gains might send the price towards the $22,000 resistance zone.

Fresh Decline in BTC?

If bitcoin fails to clear the $20,550 resistance zone, it could start another decline. An immediate support on the downside is near the $20,000 zone.

The next major support sits near the $19,780 level. A break below the $19,780 support might push the price to $19,550. Any more losses might call for a new low below $19,500.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bullish zone.

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

Major Support Levels – $19,780, followed by $19,500.

Major Resistance Levels – $20,340, $20,550 and $21,000.

Source