Bitcoin Price Resumes Increase as The Crypto Bulls Take Control

Bitcoin price climbed further higher above $21,000. BTC is rising and might aim a move towards the $22,000 resistance zone in the near term.

• Bitcoin climbed further higher above the $20,000 and $20,500 resistance levels.
• The price is trading above $20,200 and the 100 hourly simple moving average.
• There is a major bullish trend line forming with support near $20,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could rise further above the $21,500 resistance zone in the near term.

Bitcoin Price Gains Bullish Momentum

Bitcoin price gained a strong bullish momentum and settled above the $20,000 resistance zone. BTC even climbed above the $20,500 level to move into a positive zone.

The price consolidated for some time above the $20,500 level. A high is formed near $21,484 and the price is now showing signs of more upsides. It is now trading above $20,200 and the 100 hourly simple moving average. There is also a major bullish trend line forming with support near $20,500 on the hourly chart of the BTC/USD pair.

It is also trading above the 23.6% Fib retracement level of the upward move from the $20,248 swing low to $21,484 high. On the upside, an immediate resistance is near the $21,500 level.

Source: BTCUSD on TradingView.com

The next major resistance is near the $21,850 zone, above which the price might start another steady increase. In the stated case, the price may perhaps rise towards the $22,000 level. Any more gains might send btc price towards the $22,500 level.

Downside Correction in BTC?

If bitcoin price fails to clear the $21,500 resistance, it could start a downside correction. An immediate support on the downside is near the $21,000 level.

The next major support is near the $20,500 level and the trend line. It is near the 61.8% Fib retracement level of the upward move from the $20,248 swing low to $21,484 high. The main support is now forming near the $20,200 level, below which the price might retest $19,000.

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 above the 50 level.

Major Support Levels – $20,500, followed by $20,200.

Major Resistance Levels – $21,500, $22,000 and $22,500.

by Aayush Jindal on January 16, 2023 at 08:26AM