TA: Bitcoin Price Recovery Faces Hurdle, Why 100 SMA Presents Resistance

Aayush Jindal

1 year ago

2 mins read

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Bitcoin found support near $20,750 against the US Dollar. BTC is correcting gains, but it is facing resistance near $21,500 and the 100 hourly SMA.

Bitcoin found support near the $20,750 after a strong decline.
The price is now trading below the $21,500 level and the 100 hourly simple moving average.
There was a break above a major bearish trend line with resistance near $21,270 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could recover higher if there is a clear move above the $22,000 resistance.

Bitcoin Price Struggles

Bitcoin price gained bearish momentum below the $22,000 support zone. BTC declined below the $21,200 and $21,000 support levels before the bulls appeared.

A low was formed near $20,797 and the price started a short-term upside correction. There was a minor upward move above the $21,000 level. Besides, there was a break above a major bearish trend line with resistance near $21,270 on the hourly chart of the BTC/USD pair.

However, bitcoin price faced a strong resistance near the $21,500 level and the 100 hourly simple moving average. It is now struggling to clear the $21,500 resistance zone.

On the upside, an immediate resistance is near the 100 SMA at $21,450. The first major resistance on the upside sits near the $21,650 level. It is near the 23.6% Fib retracement level of the key decline from the $24,415 swing high to $20,797 low.

Source: BTCUSD on TradingView.com

The main resistance is forming near the $22,000 zone. Any more gains might send the price towards the 50% Fib retracement level of the key decline from the $24,415 swing high to $20,797 low. A close above the $22,500 and $22,650 resistance levels might push the price into a positive zone.

More Losses in BTC?

If bitcoin fails to clear the $21,500 resistance zone and the 100 hourly SMA, it could continue to move down. An immediate support on the downside is near the $21,000 level.

The next major support now sits near the $20,800 level. A downside break and close below the $20,800 level might start another major drop. In the stated case, the price might decline towards the $20,000 level.

Technical indicators:

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

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

Major Support Levels – $21,000, followed by $20,800.

Major Resistance Levels – $21,500, $22,000 and $22,650.

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.

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