The Price of Bitcoin Could Pull Back Before Massive Gain, US Dollar Could Reverse Lower

Key Take-Aways

  • Above the $20,000 obstacle, the price of bitcoin began to rise again.
  • On the 4-hour chart, it traded below a rising channel with support close to $21,000.
  • The price of gold is maintaining its rise over the $1,880 resistance.
  • The price of crude oil is correcting upwards from the $82.40 barrier.

Technical Analysis of the Bitcoin Price

Above the $18,500 resistance, the price of bitcoin started to rise again after forming a base. Near $19,000, BTC/USD overcame significant resistance to enter a short-term positive territory.

The price traded over the $20,000 resistance, the 200 simple moving average (green, 4-hours), and the 100 simple moving average, according to the 4-hours chart.

The cost even skyrocketed to $21,000. Near $21,623, a new multi-week high was established, and now the price is correcting gains. On the same chart, it traded below an ascending channel with support close to $21,000.

The upward movement from the $16,326 swing low to $21,623 high was tested at the 23.6% Fib retracement level. On the downside, a preliminary support is located close to the $20,400 mark.

Near the $19,000 zone, the main breakdown support is located. In the following days, bitcoin may begin a new, more significant slide if there is a downside break and closing below $19,000. In the hypothetical situation, it might test or go back to the $17,500 support.

On the other hand, the cost can increase once again exceeding $21,000. The next barrier is located close to the $21,500 region. In the next days, a closing over the $21,500 mark might signal the beginning of another gradual rise.

In the hypothetical situation, the cost might increase to around $22,500. Any further increases might pave the stage for a move in the direction of the $24,000 mark.

Economic News To Trade Today

  • US Initial Jobless Claims: 215K expected, up from 205K in the previous period.

Amogo Solomon is a Broker-Dealer/Market Research analyst and writer in ACT Brokers with a background in Computer Science, Data Analytics, and Forex Broker Dealing. He specializes in Forex Dealing, markets Analysis, Currency research, forex fundamental and technical analysis, and Monitoring of Forex trends, Stocks, Equities, Cryptos, and Commodities. He possesses strong technical and analytical skills and is well known for his entertaining and informative analysis of the global economy, fiat currency, commodities, Stocks, Indexes, Futures, and Options markets. He held a Bachelor's degree in Computer Science and Nanodegree in Programming for Data Science Enterprise.