Bitcoin Price Jumps 5%, Why Recent Breakout Seems Significant

Bitcoin price traded to new weekly lows before reversing losses against the US dollar. BTC has broken out of $19,500 and may move further towards $20,500.

• Bitcoin rose nearly 5%, clearly above the $19,500 resistance zone.
• The price is trading below $19,500 and the 100 hour simple moving average.
• On the hourly chart of the BTC/USD pair (data feed from Kraken), the pair has broken out of a major bearish trendline with resistance near $19,150.
• The pair is showing bullish signs and may continue its rally above $20,000.

Bitcoin price starts a new rally

Bitcoin price extended losses below the $19,000 support zone. Yesterday, his CPI data for the US was released, recording an increase of 8.2%.it changes the BTC price to $18,500 support zone.

The bears strengthened and the price plunged to the $18,200 support zone. However, the bears failed to push the price further. A low near $18,142 was met with a strong bullish reaction. The price gained bullish momentum and crossed $19,000.

Bitcoin price has cleared the 50% Fib retracement level of the downtrend from highs of $20,443 to lows of $18,142. Additionally, the BTC/USD pair has broken out of a major bearish trend line with resistance near $19,150 on the hourly chart.

The price is currently trading above $19,500, 100 hour simple moving averageThe stock is trading near the 76.4% Fib retracement level, falling from highs of $20,443 to lows of $18,142.

sauce: BTCUSD on TradingView.com

On the upside, immediate resistance is near $20,000. A clear break above the $20,000 resistance could lead the price higher.The next big resistance is near $20,450. Any further gains could start a steady increase towards the $21,200 resistance zone.

Are dips supported in BTC?

If Bitcoin fails to break out of the $20,000 resistance zone, a downward correction could begin. The immediate support for the downside is near $19,500.

The next major support is near the $19,200 zone and the 100 hour SMA. A break below the $19,200 support zone is likely to increase selling pressure. In the aforementioned case, the price could fall towards the $18,500 support zone.

Technical indicators:

Hourly MACD The MACD is currently pacing in the bullish zone.

Hourly RSI (Relative Strength Index) The RSI for BTC/USD is currently in the overbought zone.

Major Support Level $19,500, followed by $19,200.

Main resistance levels – $20,000, $20,450, and $21,200.