Bitcoin could offer interim bullish opportunities as BTC holds key support

Bitcoin led the digital assets outflows list last week
Bitcoin led the digital assets outflows list last week

This past week, the bitcoin price faced rejection near the $22,000 resistance zone. BTC/USD is now showing signs of another recovery but faces many hurdles.

Key Findings:

  • Bitcoin price was able to clear a key hurdle near $19,500.
  • BTC/USD surpassed a connecting bearish trend line with resistance near $19,450 on the 4-hours chart.
  • The pair could start a recovery wave if there is a clear move above the $20,000 resistance.

Bitcoin Price Eyes Recovery

This past week, the bitcoin price attempted a recovery wave above the $21,000 level against the US Dollar. The BTC/USD pair broke the $21,500 resistance zone and the 50 simple moving average (4 hours, blue).

However, the bears were active near the $22,000 resistance zone (a multi-touch zone). A high was formed near $22,020, and the price started a fresh decline. There was a sharp move below the $21,000 level and the $20,000 support.

Bitcoin Technical Indicators Suggest Short-term Recovery, 50 SMA Is The Key
BTC/USD four-hour price chart. Source: TradingView

A low was formed near $18,638, and the price is now correcting losses. There was a move above the $19,250 resistance zone. Besides, there was a clear move above a connecting bearish trend line with resistance near $19,450 on the 4-hours chart.

BTC/USD climbed above the 23.6% Fib retracement level of the key drop from the $22,020 high to the $18,638 low. The price faces a major resistance near the $20,000 zone and the 50 simple moving average (4 hours, blue).

A clear move above the $20,000 resistance could send the price towards the $20,350 resistance. It is near the key drop’s 50% Fib retracement level from the $22,020 high to the $18,638 low.

Any more gains might open the doors for a move towards the $21,550 resistance. The next resistance is near the $22,000 zone and the last swing high. If there are more upsides, the bulls are likely to aim for a test of the $24,000 since it is close to the 1.236 Fib extension level of the key drop from the $22,020 high to $18,638 low.

Conversely, BTC’s price might fail to clear the $20,000 resistance zone or $20,350. In the mentioned case, the price could restart its decline and revisit $18,650. The next major support is near $17,650, below which the price could accelerate lower towards the $16,750 support zone.

The bitcoin price shows a few signs of a recovery wave if there is a clear move above the $20,000 resistance zone and the 50 simple moving average (4 hours, blue).

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Bitcoin, Bitcoin could offer interim bullish opportunities as BTC holds key support

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