Bitcoin Flies Above $19,500, But Will It Begin to Correct Soon?

Bitcoin surged above the $19,500 resistance against the US dollar. BTC is now facing resistance and could soon drop back to $19,500.

• The Bitcoin price soared above the resistance levels of $19,500 and $19,600.
• The price is now trading above the $20,000 mark and the 100-hour simple moving average.
• A break above a key bearish trend line with resistance near $19,460 was seen on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair tested the $20,500 resistance zone and could correct in the short-term.

Bitcoin Price Rises Quickly

Bitcoin price formed a base above the $18,720 support level. Thus, BTC started an upward move and broke the $19,500 resistance zone.

The price of Bitcoin (BTC) rose above a key bearish trend line with resistance near $19,460 on the hourly chart of the BTC/USD pair. The price even broke through the $20,000 resistance and settled above the 100-hour simple moving average.

Bitcoin rose above the 76.4% Fibonacci retracement level of the key drop from the $20,500 high to $18,735 low. The bulls, however, failed to push price above the resistance zone at $20,500.

A high is formed near $20,450 and the price is consolidating gains. It's trading above the 23.6% Fib retracement level of the recent increase from the $18,738 swing low to $20,450 high. On the upside, it's facing resistance near the $20,450 and $20,500 levels.

The next key resistance is near the $20,920 zone. A clear move above the $20,920 resistance zone could push the price further higher. In that case, the price could rise towards the $21,500 level. The next major resistance sits near the $22,200 level.

Bitcoin (BTC) price could drop again soon.

If bitcoin fails to overcome the $20,500 resistance level, it could begin another drop. Support on the downside is near the $20,000 mark.

The next major support is near the $19,600 level or the 50% Fibonacci retracement level of the recent increase from the $18,738 low to $20,450 high. In this case, it's possible that the price will fall towards the $18,720 level.

Technical indicators such as the Dow Jones Industrial Average, the S&P 500, and

MACD – The MACD is now moving slower in the bullish zone.

At the time of writing, the RSI for BTC/USD is at a high level, above 50.

The next major support level is $20,000. Following that, the support level is $19,500.

The key resistance levels are $20,500, $20,920 and $21,500.