Key Takeaways:
- Bitcoin price started a strong increase above the $20,000 resistance zone.
- BTC/USD cleared a key bearish trend line with resistance near $19,800 on the daily chart.
- The price is showing bullish signs and might rise further above $21,500.
Bitcoin price is gaining pace above the $20,000 resistance. BTC/USD could rise further if there is a close above the $21,500 resistance zone.
Bitcoin Price Surges Past $20K
After forming a base above the $17,000 level, the bitcoin price increased. The BTC/USD pair gained pace and cleared a few key hurdles near $18,000 and $19,000.
In the past 2-3 days, there was a bullish expansion above the $19,500 resistance. It also raised the market sentiment for Ethereum, Solana, Cardano, and XRP. On the other hand, BTC price also cleared a key bearish trend line with resistance near $19,800 on the daily chart.
The bulls even pumped the price above the $20,000 resistance zone. It tested the next major hurdle near $21,350 and $21,500. A high is around $21,378, and the price is now consolidating gains.
Immediate support is near the $20,200 level. It is near the 23.6% Fib retracement level of the upward move from the $16,358 swing low to the $21,378 high. The first major support is near the $19,800 level and the broken trend line.
The main support is now forming near the $18,850 level or the 50% Fib retracement level of the upward move from the $16,358 swing low to the $21,378 high, below which the price could gain bearish momentum.
In the stated case, the price may test the $17,500 support and the 50-day simple moving average (blue). Any more losses might open the doors for a drop toward the $16,000 level.
Conversely, the price might increase above the $21,200 level. On the upside, immediate resistance is near the $21,350 level. The next key resistance might be near the $21,500 level. Finally, a close above the $21,500 level might send the price toward the $23,200 resistance zone.
Any more gains might push the price above the $24,000 resistance zone. The price might rise towards the $25,000 resistance in the stated case.
The bitcoin price shows many bullish signs above the $20,000 level. However, the current daily chart points towards a short-term downside correction before a move above the $21,350 resistance. Conversely, the price may decline toward the $18,800 support.
