Bitcoin Jumps 5%, Why BTC Could Offer Trade Openings On Dips

Bitcoin gained pace and cleared the $19,500 resistance against the US Dollar. BTC is now facing resistance and might correct lower to $19,500 in the short-term.

• Bitcoin gained pace above the $19,500 and $19,600 resistance levels.
• The price is now trading above the $20,000 level and the 100 hourly simple moving average.
• There was a move above a key bearish trend line with resistance near $19,460 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair tested the $20,500 resistance zone and might correct in the short-term.

Bitcoin Price Gains Pace

Bitcoin price formed a base above the $18,720 support zone. As a result, BTC started a decent increase and broke the $19,500 resistance zone.

There was a clear move above a key bearish trend line with resistance near $19,460 on the hourly chart of the BTC/USD pair. The price even broke the $20,000 resistance and settled above the 100 hourly simple moving average.

Bitcoin climbed above the 76.4% Fib retracement level of the key drop from the $20,500 swing high to $18,735 low. However, the bulls struggled to pump the price above the $20,500 resistance zone.

A high is formed near $20,450 and the price is consolidating gains. It is trading above the 23.6% Fib retracement level of the recent increase from the $18,738 swing low to $20,450 high. On the upside, the price is facing resistance near the $20,450 and $20,500 levels.

Source: BTCUSD on TradingView.com

The next key resistance is near the $20,920 zone. A clear move above the $20,920 resistance zone could push the price further higher. In the stated case, the price could rise towards the $21,500 level. The next major resistance sits near the $22,200 level.

Fresh Decline in BTC?

If bitcoin fails to clear the $20,500 resistance zone, it could start another decline. An immediate support on the downside is near the $20,000 level.

The next major support now sits near the $19,600 level or the 50% Fib retracement level of the recent increase from the $18,738 swing low to $20,450 high, below which the price could decline heavily. In the stated case, the price may perhaps drop towards the $18,720 level.

Technical indicators:

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

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

Major Support Levels – $20,000, followed by $19,500.

Major Resistance Levels – $20,500, $20,920 and $21,500.