Written by 3:00 pm Bitcoin

Bitcoin Price Forecast: BTC/USD Back Above $20,000

Bitcoin News & Analysis

  • Bitcoin reclaims $20,000 as risk assets rise
  • BTC/USD still on a steep downtrend but can bulls get further relief?
  • Ethereum attempts to find comfort above $1,500

Bitcoin, Ethereum and tech stocks are trading higher after a positive day for risk assets.

With Eurozone inflation showing no sign of easing, another heated CPI print has placed additional pressure on the ECB (European Central Bank). As both the ECB and the Federal Reserve gear up for the next round of rate hikes, markets shrugged off the inflation data that has been driving price action for a large portion of the year.

Visit DailyFX to Learn About the Role of Central Banks in Global Markets

As Bitcoin prices rise back above $20,000, key psychological levels will likely continue to provide important levels of support and resistance for the upcoming move. After breaking below the bear flag pattern last week, BTC/USD continued lower before finding support at around the $19,500 mark.

With the descending trendline from the August move forming an additional barrier of resistance at $20,500, a tight range has begun to form once again.

If bulls manage to drive prices higher, a break of the 50-day MA (moving average) at $22,343 and a surge in volatility could fuel the upside move. If the above-mentioned levels are cleared, a retest of the August high at $25,212 may allow for a temporary resumption of the uptrend.

Bitcoin (BTC/USD) Daily Chart

Bitcoin Price Forecast: BTC/USD Back Above $20,000 - Risk Assets Gain

Chart prepared by Tammy Da Costa using TradingView

In contrast, a move below $19,500 could allow for a probable retest of the July low at $18,905.55 with the next level of support at the June low of $17,592.78.

With the weekly chart highlighting Fibonacci levels from both the 2020 – 2021 and the 2022 move, the 78.6% retracement of the former move could further assist in capping the downward move at $17,792 while the 14.4% retracement of the 2022 move steps in as another firm layer of resistance at $24,995.

Bitcoin (BTC/USD) Weekly Chart

Bitcoin Price Forecast: BTC/USD Back Above $20,000 - Risk Assets Gain

Chart prepared by Tammy Da Costa using TradingView

— Written by Tammy Da Costa, Analyst for DailyFX.com

Contact and follow Tammy on Twitter: @Tams707

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