Bitcoin (BTC) in the accumulation phase: ready for take-off?

BTC is slowly rising above $19,500. If it continues its current run, the crypto market may experience a few days in the green. The next hurdle stands around $20,000. Thus, one could envisage a bullish rally for bitcoin (BTC) once the price breaks above this resistance zone.

Bitcoin could continue the current “bullish rally”

Bitcoin has ranged above the psychological level of $19,000. Then, it remained stable before beginning a slight increase. With this slow and steady rise, this crypto crosses above the $19,200 level.

On the H1 chart, we can see the breakout of a key downtrend line. This bullish move also ignored the 50% Fibonacci retracement level. This is a retracement of the bearish move from $19,940 to $19,000.

Since then, the price of bitcoin (BTC) is currently trading above $19,400. The crypto king also breaks above the 100 hourly simple moving average. In a slight bullish rally, the nearest resistance for Bitcoin (BTC) stands around $19,681. Indeed, this is a key resistance that lines up with the 61.8% level of the Fibonacci retracement.

However, the first major resistance is around $20,000. A close above this level could push the price higher in the short term. In such a case, the price could possibly test the $21,200 level. The breakout of this level could mean the continuation of Bitcoin’s bullish rally towards $22,000.

bitcoin rally
Bitcoin (BTC)/ Dollar (USD) – source –TradingView

An equally likely bearish scenario

In case the $20,000 resistance holds the price, it could trigger a bearish correction. In this scenario, the closest support lies near the $19,200 area. Then, if this obstacle blocks the rally of Bitcoin (BTC), the 100 hourly moving average could also act as support.

However, the next significant support is found around $19,000. A close below this level could increase bear pressure. In this case, it will be necessary to rely on the support at $18,500. The breakout of this level could trigger a bearish rally in Bitcoin (BTC) towards $18,250.

Receive a digest of news in the world of cryptocurrencies by subscribing to our new service of newsletter daily and weekly so you don’t miss any of the essential!

Similar Posts