Key Takeaways:
- Bitcoin price gained pace and broke the $22,000 resistance.
- BTC/USD surpassed a major bearish trend line with resistance at $20,510 on the 4-hours chart.
- The current price action suggests a possible move towards the $24,500 resistance zone.
Bitcoin price started a strong increase above the $20,500 resistance zone. BTC/USD could rise further towards the $24,500 resistance zone.
Bitcoin Price Gains Bullish Momentum
This past week, bitcoin price gained bearish momentum below the $20,500 level against the US Dollar. The BTC/USD pair declined sharply below the $20,000 zone and the 50 simple moving average (4-hours, blue).
However, the bulls were active near the key $18,850 support zone. A low was formed near $18,912 and the price started a fresh increase. More importantly, the recent Ethereum rally triggered an increase in bitcoin above the $20,000 resistance.
Bitcoin rallies | Source: BTCUSD on TradingView.com
The price gained pace for a move above the $20,500 resistance. It even surpassed a major bearish trend line with resistance at $20,510 on the 4-hours chart.
The price jumped above the $22,000 level and settled above the 50 simple moving average (4-hours, blue). It is now trading above the 76.4% Fib retracement level of the key decline from the $22,425 high to $18,912 low.
It seems like the bulls might clear the key $22,425 swing high in the coming sessions. The next key hurdle could be $23,250. A clear move above the $23,250 resistance could send the price towards the $24,500 resistance.
The 1.618 Fib extension level of the key decline from the $22,425 high to $18,912 low is also near the $24,500 zone. Any more gains might set the pace for a move towards the $25,000 resistance zone.
An initial support is near the $21,600 level. The next major support is near $20,500 and the 50 simple moving average (4-hours, blue), below which the price could take a hit and test the $20,000 zone. The next major support is near the $18,800 zone. Any more losses could send the price to a new multi-month low.
Overall, bitcoin price is trading well above the $21,500 pivot level and the 50 simple moving average (4-hours, blue). The current price action suggests a possible move towards the $24,500 resistance zone. There could be a short-term correction, but the price might remain well bid above the $20,500 support zone in the coming sessions.
