Bitcoin bounced off support at $17,500 and lifted towards $20,000 but hit a snag at $19,438.
On-chain metrics suggest that Bitcoin is ready for gains above $20,000 while its downside is well protected.
Bitcoin recently tested support at $17,500, almost hitting the target as we had predicted. The freefall appears to have allowed more investors to enter the market with BTC trading at a relatively lower price level. The increase in buy orders increased the tailwind on Bitcoin, lifting it above various key levels, including the 200 Simple Moving Average, the 50 SMA, and $19,000.
The flagship cryptocurrency ground closer to $19,500 (last week’s resistance) but hit a high at $19,438. At the time of writing, BTC/USD is in the middle of a retreat while trading slightly under $19,100.
On the downside, support at $19,000 is key to resuming the uptrend above $19,500 and setting the pace for gains to new yearly highs. The Relative Strength Index adds credence to the short term bearish action following the retreat from levels near the overbought to those around 60.
chart reveals the lack of robust resistance zones ahead of BTC. Hence, a break above the minor seller congestion at $19,156 and $19,248 will place Bitcoin in an upward trajectory to $20,000.
On the downside, the bellwether cryptocurrency is sitting on levels with immense support, suggesting that the current retreat is a temporary setback and that BTC will soon embark on the journey to new yearly highs. Two robust support levels have been highlighted at $18,322 and $18,878. Bitcoin is unlikely to slide through these support areas, thus the possibility of a rebound is massive.
Bitcoin IOMAP chart
It is worth mentioning that substantial declines will come into the picture if Bitcoin extended the bearish price under $19,000. Moreover, if the 50 SMA support at $18,690 fails to hold, the cryptoasset will be forced to seek an anchor at the 200 SMA currently at $18,000.
Luke has had a long interest in financial technology, especially cryptocurrency and blockchain. With a Bachelors degree in Journalism and Media, Luke is dedicating his writing skills for the digital currency sphere.He can be contacted at firstname.lastname@example.org