Bitcoin Price Forms Bullish Pattern, Why BTC Could Rally Above $20K

Bit­coin price is hold­ing gains above the $19,000 lev­el against the US Dol­lar. BTC could ral­ly if there is a clear move above the $19,660 resis­tance zone.

• Bit­coin remained sta­ble and con­sol­i­dat­ed above the $19,000 sup­port zone.
• The price is trad­ing above $19,100 and the 100 hourly sim­ple mov­ing average.
• There is a key bull­ish trend line form­ing with sup­port near $19,220 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could start a fresh surge if there is a clear move above the $19,660 resis­tance zone.

Bitcoin Price Consolidates

Bit­coin price start­ed a recov­ery wave from the $18,500 sup­port zone. BTC bulls remained active above the $18,500 lev­el and man­aged to push the price above the $19,000 resis­tance zone.

There was a clear move above the 50% Fib retrace­ment lev­el of the key decline from the $20,382 swing high to $18,486 low. The price even climbed above the $19,500 resis­tance zone, but the bears were active near the $19,650 and $19,660 levels.

Bit­coin price is now con­sol­i­dat­ing above $19,100 and the 100 hourly sim­ple mov­ing aver­age. There is also a key bull­ish trend line form­ing with sup­port near $19,220 on the hourly chart of the BTC/USD pair.

On the upside, an imme­di­ate resis­tance is near the $19,500 lev­el. The next major resis­tance sits near the $19,660 zone. It is close to the 61.8% Fib retrace­ment lev­el of the key decline from the $20,382 swing high to $18,486 low.

Source: BTCUSD on TradingView.com

A clear move above the $19,660 resis­tance might start a fresh increase. In the stat­ed case, the price could even sur­pass the $20,000 resis­tance zone. The next major resis­tance is near the $20,500 zone, above which the price may per­haps revis­it the $21,000 zone.

Another Drop in BTC?

If bit­coin fails to rise above the $19,660 resis­tance zone, it could start a fresh decline. An imme­di­ate sup­port on the down­side is near the $19,350 zone and the 100 hourly SMA.

The next major sup­port is near the $19,220 zone and the bull­ish trend line. The main sup­port is near $19,000. Any more loss­es might call for a drop towards the $18,500 sup­port zone in the com­ing sessions.

Tech­ni­cal indicators:

Hourly MACD – The MACD is now los­ing pace in the bull­ish zone.

Hourly RSI (Rel­a­tive Strength Index) – The RSI for BTC/USD is now above the 50 level.

Major Sup­port Lev­els – $19,220, fol­lowed by $19,000.

Major Resis­tance Lev­els – $19,660, $20,000 and $20,500.