Bitcoin price remains strong, why ETH could push BTC higher

Bitcoin is consolidating above the $19,500 support against the US dollar. BTC could start a big rally considering the recent rise in Ether.

• Bitcoin is still trading in the area near the $20,000 zone and below the $20,500 resistance.
• The price is now trading below the $20,000 level and the 100 hourly simple moving average.
• An important bullish trend line is forming with support near $19,700 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could start a decent rally unless there is a clear move below the $19,600 and $19,500 levels.

Bitcoin Price Eyes Fresh Increase

Bitcoin price remained in an area below the $20,500 and $20,550 resistance levels. Recently, BTC formed a support base above the $19,600 level and started an upside correction.

It was a move above the $19,800 resistance level and the 100 hourly simple moving average. The bulls were able to push the price above the 50% Fib retracement level for downward movement from $20,398 high to $19,600 low.

Finally, there was a top above the $20,000 resistance. However, the bears were active near the $20,100 zone. Bitcoin price failed to clear the 61.8% Fib retracement level for the downward move from the $20,398 swing high to the $19,600 low.

It is now trading below the $20,000 level and the 100 hourly simple moving average. An important bullish trend line is also forming with support near $19,700 on the hourly chart of the BTC/USD pair.

Source: BTCUSD on TradingView.com

On the upside, immediate resistance is near the $19,900 level and the 100 hourly simple moving average. The next major resistance is near the $20,100 level. The main resistance remains near the $20,400 and $20,500 levels. A clear move above the $20,500 resistance could send the price towards $21,200. Any further gains could start pushing the price towards the $22,000 resistance zone.

Downside breakout in BTC?

If bitcoin fails to clear the $20,400 resistance zone, it could start another decline. An immediate support on the downside is near the $19,700 zone and the trendline.

The next major support is near the $19,600 level. The main support is near the $19,500 level. A clear move below the $19,500 support could initiate a major decline. In the indicated case, the price might test the $18,500 support.

Technical indicators:

Hourly MACD – MACD is now losing momentum in the bullish zone.

Hourly RSI (Relative Strength Index) – RSI for BTC/USD is now near the 50 level.

Major support levels – $19,700, followed by $19,500.

Major resistance levels – $20,000, $20,400 and $20,500.