Bitcoin price is correcting lower below the $20,500 support. BTC/USD remains supported above $20,000 and might aim a fresh rally.
Bitcoin Price Remains In Uptrend
In the past few days, bitcoin price saw a steady increase above the $19,500 resistance level. The BTC/USD pair gained pace and was able to clear the $20,000 resistance zone.
The price settled nicely above the $20,000 level and 50 simple moving average (4-hours, blue), but it lacked momentum vs ethereum. The upward move was such that the price even spiked above the $21,000 level.
Bitcoin price 4-hours chart | Source: BTCUSD on TradingView.com
A high was formed near $21,091 before there was a downside correction. There was a move below the $20,500 level. The price dipped below the 50% Fib retracement level of the key increase from the $20,033 swing low to $21,091 high.
It is now consolidating near the $20,500 support zone. The first major support is near the $20,400 and $20,250 levels. There is also a key bullish trend line with support at $20,400 on the 4-hours chart.
The trend line is close to the 61.8% Fib retracement level of the key increase from the $20,033 swing low to $21,091 high. The next substantial and crucial support sits near the $20,000 level. A clear move below the $20,000 support could push the price into a bearish zone. In the stated case, the price may perhaps decline towards the $19,000 zone.
On the upside, an immediate resistance is near the $20,800. The first major resistance is near the $21,000 zone. A clear move above the $21,000 level might even push the price above $21,500. In the stated case, the price could rise steadily towards the $22,000 resistance. Any more gains could set the pace for a test of the $23,200 resistance. The next major resistance sits near the $24,000 level.
Overall, bitcoin price is correcting gains, but trading well above the $20,000 support. A close below the $20,200 and $20,000 support levels might start a fresh decline. Conversely, the price might start another surge and clear the $21,000 barrier in the near term.
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