Bitcoin price is trading in a bearish zone below $21,000. BTC/USD must clear $21,000 and the 50 SMA (H4) to start a steady increase.
Bitcoin Price Tests Key Resistance
This past week, bitcoin price saw a fresh decline from well above the $21,500 level. The BTC/USD pair traded below the $21,200 and $21,000 support levels to move further into a bearish zone.
The price even declined below the $20,000 level and the 50 simple moving average (4-hours, blue). Finally, the bulls appeared near the $19,550 zone. A low is formed near $19,540 and the price is now consolidating losses.
Bitcoin 4-hours chart | Source: BTCUSD on TradingView.com
Recently, there was a minor upside correction above the $20,000 and $20,200 levels. The price was able to move above the 23.6% Fib retracement level of the recent decline from the $21,874 swing high to $19,540 low.
However, the bears are defending the $20,400 resistance zone and the 50 simple moving average (4-hours, blue). On the upside, an immediate resistance is near the $20,350 level.
Besides, there is a key bearish trend line in place with resistance at $20,350 on the 4-hours chart. The next key resistance might be near the $20,700 level and the 50 simple moving average (4-hours, blue). It is near the 50% Fib retracement level of the recent decline from the $21,874 swing high to $19,540 low.
A clear move above the $20,700 resistance could start a steady increase. In the stated case, the price might test the $21,000 resistance. If the bulls push the price above the $21,000 barrier, the price might test the $21,850 level.
Any more gains might set the pace for a move towards the $22,500 resistance zone. If not, bitcoin price might resume its decline below the $20,000 level.
The first major support is near the $19,550 and $19,500 levels. The main breakdown support sits at $18,800, below which the price could gain bearish momentum. In the stated case, the price may perhaps test the $17,500 support.
Overall, bitcoin price is struggling to recover above the $20,700 and $21,000 resistance levels. If the bears remain in action, there is a risk of a move towards the $18,800 support. Conversely, the price might clear hurdles and rise towards the $21,850 resistance zone.
The post Bitcoin (BTC) is Showing Early Signs of Fresh Rally, But 50 SMA is The Key appeared first on CoinChapter.
