Bitcoin found a strong buying interest near $src8,500 against the US Dollar. BTC is recovering and there could be a fresh increase above the $20,000 resistance.
Bitcoin remained stable and the bulls again protected the $src8,500 support zone.
The price is trading above $src9,000 and the src00 hourly simple moving average.
There is a short-term channel forming with support near $src9,280 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could start a fresh rally if there is a clear move above the $src9,650 resistance zone.
Bitcoin Price Holds Key Support
Bitcoin price declined heavily from well above the $20,000 pivot level. BTC dropped below the $src9,000 level, but the bulls were active near the $src8,500 support zone.
It seems like the price is well supported near the $src8,500 zone and there are multiple rejections visible around the same area. The price is now rising and there was a move above the $src9,000 resistance zone. The bulls pushed the price above the 50% Fib retracement level of the downward move from the $20,383 swing high to $src8,487 low.
Bitcoin price is now trading above $src9,000 and the src00 hourly simple moving average. There is also a short-term channel forming with support near $src9,280 on the hourly chart of the BTC/USD pair.
On the upside, an immediate resistance is near the $src9,600 level. The next major resistance sits near the $src9,650 zone. It is close to the 6src.8% Fib retracement level of the downward move from the $20,383 swing high to $src8,487 low.
Source: BTCUSD on TradingView.com
A close above the $src9,650 level might start a fresh increase. In the stated case, the price could rise towards $20,000. Any more gains might lead the price higher towards the $20,500 resistance zone.
Another Decline in BTC?
If bitcoin fails to recover above the $src9,650 resistance zone, it could start a fresh decline. An immediate support on the downside is near the $src9,280 zone and the channel trend line.
The next major support is near the $src9,200 zone and the src00 hourly SMA. The main support is near $src9,000. Any more losses might call for a drop towards the $src8,500 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 – $src9,200, followed by $src9,000.
Major Resistance Levels – $src9,650, $20,000 and $20,500.
