TA: Bitcoin Trims Gains, Why 100 SMA Could Trigger Fresh Increase
Bitcoin struggled above the $21,500 resistance zone against the US Dollar. BTC is trimming gains and might find support near the 100 hourly SMA.
Bitcoin climbed above the $21,500 level before it faced sellers. The price is now above the $20,000 level and the 100 hourly simple moving average.
There was a break below a key bullish trend line with support near $21,175 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could find bids near the $20,000 zone or the 100 hourly simple moving average.
Bitcoin Price Dips
Bitcoin price started an upside correction above the $20,000 resistance zone. There was a decent recovery wave above the $20,200 and $20,500 levels.
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The price climbed the 61.8% Fib retracement level of the key downside from the $22,950 high to the $17,600 low. Finally, there was a move above the $21,000 resistance zone and the price settled above the 100 hourly simple moving average.
However, the bears were active above the $21,500 level. A high was formed near the $21,698 and the price started a downside correction.
There was a break below the 23.6% Fib retracement level of the upward move from the $17,600 swing low to the $21,698 high.
Besides, there was a break below a key bullish trend line with support near $21,175 on the hourly chart of the BTC/USD pair.
The price is now trading below $21,000. Immediate resistance on the upside is near the $20,550 level. The first major resistance is near the $21,000 and $21,220 levels.
A clear move above the $21,220 level might call for a move to $21,700. Any more gains might send the price towards the $22,200 level in the coming sessions.
More Losses in BTC?
If bitcoin fails to clear the $21,220 resistance zone, it could continue to move down. Immediate support on the downside is near the $20,000 level and the 100 hourly SMA.
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The next major support is near the $19,650 level. It is near the 50% Fib retracement level of the upward move from the $17,600 swing low to the $21,698 high.
A downside break below the $19,650 support could restart the downtrend in the near term. - newsbtc
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