BTC Technical Analysis: Is Bitcoin Coming Back Above $20K This Week?

The BTC price chart shows a bullish retaliation at the $18,850 support level to avoid a downtrend continuation to the 52-week low of $17,600. Moreover, the technical indicators support the possibility of a bullish turnaround to regain the $20K mark. So should you consider buying Bitcoin below the $20K level?

Key Points:

Source - TradingView

BTC Technical Analysis

The BTC prices avoided a downfall below the crucial support level of $18850 with a bullish piercing candle of 2.59% growth. Moreover, the spike in the intraday trading volume support is a bullish candle that increases the possibility of a bull cycle.

The bullish reversal comes within the falling wedge pattern, which comes as an early reversal before reaching a support trend line. Hence, the possibility of a bullish breakout of the resistance trendline increases, which may propel the prices above the psychological mark of $20,000.

Currently, the price action displays a Doji candle forming near the resistance trendline, reflecting the sellers at the trendline asserting dominance.

If Bitcoin (BTC) prices exceed the resistance trendline, the bulls may propel them to the overhead resistance of $21,875, accounting for a price jump of more than 10%.

However, if the prices take a bearish reversal, the sellers may push down the market value to the 52-week low of $17,600.

Technical Indicators

Relative Strength Index: The daily-RSI slope showcases the lateral trend within the nearly oversold zone under the 14-day SMA. However, the bullish divergence between the last two dips within the bearish pattern supports the possibility of a bullish turnaround.

MACD: The fast and slow lines move close in the negative zone with a minimal bearish gap projecting a high possibility of a bullish crossover. Hence, the technical indicators show rising demand for BTC.

Resistance Levels - $1.18 and $1.30

Support Levels - $1 and $0.84