Bitcoin Bounces off $18,250 – Is It Heading Towards $20,450?
Bitcoin fell to a new weekly low before recovering losses versus the US dollar. BTC has broken through $19,500 and may increase further to $20,500. Bitcoin’s price fell below the $19,000 support level. The US CPI statistics were released yesterday, showing an 8.2% increase. It pushed the price of Bitcoin below the $18,500 support level.
The bears gained traction, and the price fell to the $18,200 support level. However, the bears were unable to depress the price any further. There was a significant bullish reaction after a low was set near $18,142. The price gained bullish momentum and surpassed the $19,000 mark. Bitcoin price broke through the 50% Fib retracement level of the decline from the swing high of $20,443 to the low of $18,142. Furthermore, on the hourly chart of the BTC/USD pair, there was a break above a strong negative trend line with resistance above $19,150.
The BITCOIN price currently trades below $19,500 and above the 100 hourly simple moving average. It is trading near the 76.4% Fib retracement level of the decline from the swing high of $20,443 to the low of $18,142.
Bitcoin (BTC/USD) Technical Outlook
On the upside, the $20,000 level represents an immediate hurdle. A decisive break above the $20,000 resistance level might push the price much higher. The next major resistance is $20,450. Any further advances might sustain a rise toward the $21,200 barrier zone. If Bitcoin fails to break through the $20,000 resistance level, it may begin a downward trend.
On the downside, there is immediate support near $19,500. The next significant support is nearly $19,200 and the 100 hourly SMA. A break below the $19,200 support level may intensify selling pressure. In the scenario above, the price could fall toward the $18,500 support zone.
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