Bitcoin price is forming a bullish pattern, why BTC may rally above $20K

Bitcoin price holds gains above the $19,000 level against the US dollar. BTC may rally if there is a clear move above the $19,660 resistance zone.

• Bitcoin remained stable and consolidated above the $19,000 support zone.
• The price is trading above $19,100 and the 100 hourly simple moving average.
• An important bullish trend line is forming with support near $19,220 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could start another rally if there is a clear move above the $19,660 resistance zone.

Bitcoin price is consolidating

Bitcoin price started a recovery wave from the $18,500 support zone. BTC bulls remained active above the $18,500 level and managed to push the price above the $19,000 resistance zone.

There was a clear move above the 50% Fib retracement level for the key decline from the $20,382 swing high to the $18,486 low. The price even climbed above the $19,500 resistance zone, but the bears were active near the $19,650 and $19,660 levels.

Bitcoin price is now consolidating above $19,100 and the 100 hourly simple moving average. An important bullish trend line is also forming with support near $19,220 on the hourly chart of the BTC/USD pair.

On the upside, an immediate resistance is near the $19,500 level. The next major resistance is near the $19,660 zone. It is near the 61.8% Fib retracement level of the key decline from the $20,382 swing high to the $18,486 low.

Source: BTCUSD on TradingView.com

A clear move above the $19,660 resistance could start another rally. In the indicated case, the price may even surpass the $20,000 resistance zone. The next major resistance is near the $20,500 zone, above which the price may retrace to the $21,000 zone.

Another fall in BTC?

If bitcoin fails to rise above the $19,660 resistance zone, it could start another decline. An immediate support on the downside is near the $19,350 zone and the 100 hour SMA.

The next major support is near the $19,220 zone and the bullish trend line. The main support is near $19,000. Any further losses may require a drop towards the $18,500 support zone in the coming sessions.

Technical indicators:

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

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

Major support levels – $19,220, followed by $19,000.

Major resistance levels – $19,660, $20,000 and $20,500.