Bitcoin Price Forms Short-Term Bullish Pattern, Why BTC Could Rise To $20K
2 min read
Bitcoin price is consolidating near the $19,000 level against the US Dollar. BTC seems to be forming a short-term bullish pattern and might rise towards $20,000.
- Bitcoin is struggling to gain pace for a move above the $19,200 level.
- The price is trading below above $19,400 and the 100 hourly simple moving average.
- There is a new connecting bearish trend line forming with resistance near $19,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could start a fresh increase unless there is a clear move below the $18,950 level.
Bitcoin Price Remains In A Range
Bitcoin price was seen trading in a range below the $20,000 resistance zone. BTC even settled below the $19,500 level and the 100 hourly simple moving average.
The last swing low was formed near $18,860 before there was a minor upside correction. The price was able to clear the 23.6% Fib retracement level of the downward move from the $19,560 swing high to $18,860 low. The bulls even pushed the price above the $19,200 level.
However, the bears were active above the $19,200 level. Bitcoin price struggled to clear the 50% Fib retracement level of the downward move from the $19,560 swing high to $18,860 low.
It is now trading below above $19,400 and the 100 hourly simple moving average. It seems like there is a short-term inverse head and shoulders pattern forming with breakdown support at $18,950. On the upside, an immediate resistance is near the $19,200 level. There is also a new connecting bearish trend line forming with resistance near $19,200 on the hourly chart of the BTC/USD pair.
Source: BTCUSD on TradingView.com
A clear move above the trend line might send the price towards the $19,500 resistance. Any more gains might start a steady increase towards the $20,000 resistance zone.
More Losses in BTC?
If bitcoin fails to rise above the $19,200 resistance zone, it could continue to move down. An immediate support on the downside is near the $18,950 zone.
The next major support is near the $18,860 zone. A downside break below the $18,860 support zone send the price towards the $18,550 level. Any more losses might call for a drop towards the $17,800 support zone.
Technical indicators:
Hourly MACD – The MACD is now gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major Support Levels – $18,950, followed by $18,860.
Major Resistance Levels – $19,200, $19,500 and $20,000.
