Bitcoin Price Lacks Momentum Above $20K, But Dips Likely To Be Limited

Bitcoin is struggling to gain momentum above $20,000 against the US Dollar. BTC could rise steadily if there is a clear move above the $20,200 resistance zone.

  • Bitcoin is stuck near the $20,000 zone and trading below the $20,550 resistance.
  • The price is now trading near the $20,000 level and the 100 hourly simple moving average.
  • There is a major bearish trend line forming with resistance near $20,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could start a steady increase if it clears the $20,200 zone and $20,550 resistance levels.

Bitcoin Price Stuck Near $20K

Bitcoin price traded in a range and remained well supported above the $19,550 zone. BTC also struggled to clear the $20,500 resistance zone.

Recently, there was a fresh drop below the $20,000 level. However, the bulls were active near the $19,500 zone. A low was formed near $19,560 and the price started a decent increase. There was a move above the $19,800 and $20,000 levels.

The bulls pushed the price above the 50% Fib retracement level of the recent decline from the $20,473 swing high to $19,560 low. Bitcoin price is now trading near the $20,000 level and the 100 hourly simple moving average.

On the upside, an immediate resistance is near the $20,125 level. It is near the 61.8% Fib retracement level of the recent decline from the $20,473 swing high to $19,560 low. There is also a major bearish trend line forming with resistance near $20,200 on the hourly chart of the BTC/USD pair.

Bitcoin Price

Source: BTCUSD on TradingView.com

The next major resistance sits near the $20,350 and $20,500 levels. A clear move above the $20,500 resistance might send the price towards $21,200. Any more gains might start a steady move towards the $22,000 resistance zone.

Dips Limited in BTC?

If bitcoin fails to clear the $20,200 resistance zone, it could start another decline. An immediate support on the downside is near the $19,850 zone.

The next major support sits near the $19,550 level. The main support sits near the $19,500 level. A break below the $19,500 support might start a sharp decline to $19,000. Any more losses might call for a move to $18,500 in the near term.

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 – $19,850, followed by $19,500.

Major Resistance Levels – $20,200, $20,350 and $20,500.

Source: https://www.newsbtc.com/analysis/btc/bitcoin-price-lacks-momentum-20k/