The Price of Bitcoin Could Pull Back Before Massive Gain, US Dollar Could Reverse Lower
- 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.
Author: Amogo Solomon
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