Bitcoin Price Just Saw Technical Correction, Why BTC Could Rise Again

Aayush Jindal

1 year ago

2 mins read

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Bitcoin price started a downside correction from $21,000 against the US Dollar. BTC is stable above $20,000 and might start a fresh increase.

Bitcoin is holding gains above the $20,000 and $20,200 levels.
The price is trading above $20,000 and the 100 hourly simple moving average.
There is a key bearish trend line forming with resistance near $20,440 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could start another upward move if there is a clear move above the $20,500 resistance.

Bitcoin Price Reaches Key Support

Bitcoin price started a fresh increase above the $20,000 and $20,500 resistance levels. BTC even traded above the $20,800 level and tested the $21,000 resistance zone.

A high was formed near $21,021 before there was a downside correction. The price declined below the $20,800 and $20,500 levels. It even broke the 23.6% Fib retracement level of the key increase from the $19,266 swing low to $21,021 high.

Bitcoin price is now trading above $20,000 and the 100 hourly simple moving average. It seems to be holding gains above the $20,000 and $20,200 levels.

The price also tested the 50% Fib retracement level of the key increase from the $19,266 swing low to $21,021 high. On the upside, an immediate resistance is near the $20,400 zone. There is also a key bearish trend line forming with resistance near $20,440 on the hourly chart of the BTC/USD pair.

Source: BTCUSD on TradingView.com

The first major resistance sits near the $20,500 level and the trend line. The next major resistance might be $21,000. A clear move above the $21,000 resistance might send the price towards the $22,000 resistance. Any more gains open the doors for a test of the $22,500 resistance zone.

More Losses in BTC?

If bitcoin fails to rise above the $20,500 resistance zone, it could continue to move down. An immediate support on the downside is near the $20,150 zone.

The next major support is near the $20,000 zone and the 100 hourly simple moving average. A downside break and close below $20,000 might open the doors for a move towards the $19,500 support zone.

Technical indicators:

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

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

Major Support Levels – $20,200, followed by $20,000.

Major Resistance Levels – $20,400, $20,500 and $21,000.

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
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In a world where uncertainty reigns supreme, Aayush Jindal stands as a guiding light, illuminating the path to financial success with his unparalleled expertise, unwavering integrity, and boundless enthusiasm for the markets.

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