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TA: Bitcoin Dips Could Be Limited, Why 100 SMA Is The Key

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Bitcoin is showing positive signs above the $21,000 zone against the US Dollar. BTC might start a fresh increase and could even clear the $21,750 resistance zone.

  • Bitcoin remains well supported above the $21,000 and $20,500 levels.
  • The price is now above the $20,800 level and the 100 hourly simple moving average.
  • There was a break below a key bullish trend line with support near $21,300 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could gain bullish momentum if it stays above $20,500 and the 100 hourly SMA.

Bitcoin Price Remains Supported

Bitcoin price started a decent increase above the $20,000 resistance zone. The price was able to clear the $20,500 level to move into a positive zone.

There was a steady move above the $21,000 level and the 100 hourly simple moving average. However, the bears were again active near the $21,700 and $21,750 levels. A high was formed near $21,780 and the price started a downside correction.

Bitcoin traded below the $21,500 level. There was a break below the 23.6% Fib retracement level of the upward move from the $19,750 swing low to $21,780 high.

Besides, there was a break below a key bullish trend line with support near $21,300 on the hourly chart of the BTC/USD pair. It is now consolidating above the $21,000 level and the 100 hourly simple moving average. An immediate resistance on the upside is near the $21,250 level.

Bitcoin Price

Source: BTCUSD on TradingView.com

The next key resistance is near the $21,750 level. A clear move above the $21,750 level might start a decent increase. In the stated case, the price could rise above the $22,200 level. Any more gains could send the price towards the $23,000 resistance zone.

Fresh Decline in BTC?

If bitcoin fails to clear the $21,750 resistance zone, it could start another decline. An immediate support on the downside is near the $21,000 level and the 100 hourly SMA.

The first major support is near the $20,750 level. It is near the 50% Fib retracement level of the upward move from the $19,750 swing low to $21,780 high. A downside break below the $20,750 support could put a lot of pressure on the bulls in the near term. In the stated case, the price might slide towards the $20,000 level.

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 just below the 50 level.

Major Support Levels – $21,000, followed by $20,750.

Major Resistance Levels – $21,250, $21,750 and $23,000.

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