Bitcoin price traded to a new weekly low before reversing losses against the US Dollar. BTC broke $19,500 and might rise further towards $20,500.

• Bitcoin is up nearly 5% and there was a clear move above the $19,500 resistance zone.
• The price is trading below above $19,500 and the 100 hourly simple moving average.
• There was a break above a major bearish trend line with resistance near $19,150 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair is showing bullish signs and might extend gains above $20,000.

Bitcoin Price Starts Fresh Rally

Bitcoin price extended losses below the $19,000 support zone. Yesterday, the US CPI data was released, which posted an increase of 8.2%. It pushed BTC price below the $18,500 support zone.

The bears gained strength and the price dived to the $18,200 support zone. However, the bears failed to push the price further lower. A low was formed near $18,142 and there was a strong bullish reaction. The price gained bullish momentum and climbed above the $19,000 level. Bitcoin price cleared the 50% Fib retracement level of the downward move from the $20,443 swing high to $18,142 low. Besides, there was a break above a major bearish trend line with resistance near $19,150 on the hourly chart of the BTC/USD pair.

The price is now trading below above $19,500 and the 100 hourly simple moving average. It is trading near the 76.4% Fib retracement level of the downward move from the $20,443 swing high to $18,142 low.

Source: On the upside, an immediate resistance is near the $20,000 level. A clear move above the $20,000 resistance might pump the price further higher. The next major resistance is near the $20,450 level. Any more gains might start a steady increase towards the $21,200 resistance zone.

Dips Supported in BTC?

If bitcoin fails to rise above the $20,000 resistance zone, it could start a downside correction. An immediate support on the downside is near the $19,500 zone. The next major support is near the $19,200 zone and the 100 hourly SMA. A downside break below the $19,200 support zone might increase selling pressure. In the stated case, the price could decline towards the $18,500 support zone. Technical indicators: Hourly MACD – The MACD is now gaining pace in the bullish zone. Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now in the overbought zone. Major Support Levels – $19,500, followed by $19,200. Major Resistance Levels – $20,000, $20,450 and $21,200.