15.2 C
Auckland
Wednesday, December 7, 2022
No menu items!
Google search engine
HomeCryptocurrencyBitcoin Dips Could Be Limited, Why 100 SMA Is The Key

Bitcoin Dips Could Be Limited, Why 100 SMA Is The Key


Bitcoin is showing positive signs above the $21,000 zone against the US Dollar. BTC might start a fresh increase and could even clear the $21,750 resistance zone.

  • Bitcoin remains well supported above the $21,000 and $20,500 levels.
  • The price is now above the $20,800 level and the 100 hourly simple moving average.
  • There was a break below a key bullish trend line with support near $21,300 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could gain bullish momentum if it stays above $20,500 and the 100 hourly SMA.

Bitcoin Price Remains Supported

Bitcoin price started a decent increase above the $20,000 resistance zone. The price was able to clear the $20,500 level to move into a positive zone.

There was a steady move above the $21,000 level and the 100 hourly simple moving average. However, the bears were again active near the $21,700 and $21,750 levels. A high was formed near $21,780 and the price started a downside correction.

Bitcoin traded below the $21,500 level. There was a break below the 23.6% Fib retracement level of the upward move from the $19,750 swing low to $21,780 high.

Besides, there was a break below a key bullish trend line with support near $21,300 on the hourly chart of the BTC/USD pair. It is now consolidating above the $21,000 level and the 100 hourly simple moving average. An immediate resistance on the upside is near the $21,250 level.

Bitcoin Price

Source: BTCUSD on TradingView.com

The next key resistance is near the $21,750 level. A clear move above the $21,750 level might start a decent increase. In the stated case, the price could rise above the $22,200 level. Any more gains could send the price towards the $23,000 resistance zone.

Fresh Decline in BTC?

If bitcoin fails to clear the $21,750 resistance zone, it could start another decline. An immediate support on the downside is near the $21,000 level and the 100 hourly SMA.

The first major support is near the $20,750 level. It is near the 50% Fib retracement level of the upward move from the $19,750 swing low to $21,780 high. A downside break below the $20,750 support could put a lot of pressure on the bulls in the near term. In the stated case, the price might slide towards the $20,000 level.

Technical indicators:

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

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

Major Support Levels – $21,000, followed by $20,750.

Major Resistance Levels – $21,250, $21,750 and $23,000.



Source link

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -
Google search engine

Most Popular

Recent Comments