Bitcoin (BTC) Price Key Reversal Could Trigger Next Rally To $24K

Bitcoin (BTC) Price Key Reversal | Photo by Quantitatives on Unsplash

Bitcoin price is trading in a bullish zone above $21,000. BTC/USD must clear $22,650 to start a rally towards the $24,000 resistance zone.

Bitcoin Price Prints Bullish Breakout

This past week, bitcoin price found a strong buying interest near the $18,500 zone. The BTC/USD pair traded as low as $18,549 and recently started a fresh increase.

There was a clear move above the $19,500 and $20,000 resistance levels. Besides, the price was able to clear a major bearish trend line with resistance at $19,600 on the 4-hours chart. It opened the doors for more gains above the $20,500 resistance and the 50 simple moving average (4-hours, blue).

Bitcoin 4-hours chart | Source: BTCUSD on TradingView.com

The bulls were able to push the price above the 50% Fib retracement level of the key drop from the $25,205 swing high to $18,549 low.

The price is now trading comfortably above the $22,000 resistance and the 50 simple moving average (4-hours, blue). On the upside, an immediate resistance is near the $22,650 level. It is near the 61.8% Fib retracement level of the key drop from the $25,205 swing high to $18,549 low.

A clear move above the $22,650 resistance might open the doors for a fresh rally. The next key resistance might be near the $23,650 level, above which it might even test the $24,000 resistance.

Any more gains could set the pace for a test of the all-important $25,000 resistance. If bitcoin fails to clear the $22,650 resistance zone, it could start a downside correction. An initial support sits near the $21,850 level.

The first major support is near the $21,250 and $21,200 levels. The main breakdown support sits at $20,400 and the 50 simple moving average (4-hours, blue), below which the price could gain bearish momentum. In the stated case, the price may perhaps test the $18,500 support.

Overall, bitcoin price is gaining bullish momentum above the $21,500 zone. If the bulls remain in action, the price may perhaps rise towards the $23,650 level or even $24,000. Conversely, the price might start a downside correction and revisit the $20,400 support zone in the coming days.