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Bitcoin price declined over 8% and tested the $20,000 support. BTC might correct higher, but upsides might be limited above the $21,200 zone.
- Bitcoin down over 8% and there was a spike below the $20,000 support.
- The price is trading below $21,000 and the 100 hourly simple moving average.
- There is a crucial bearish trend line forming with resistance near $21,300 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could correct higher, but the bears might be active near $21,000.
Bitcoin Price Takes Major Hit
Bitcoin price failed to rise above the $22,200 resistance zone. BTC faced a strong rise in selling interest, resulting in a drop below the $21,500 support zone.
The price is down over 8% and there was a crash towards the $20,000 support. The price even spiked below the $20,000 support zone. A new monthly low is formed near $19,800 and the price is now consolidating losses near the $20,000 zone.
Bitcoin price is now trading below $21,000 and the 100 hourly simple moving average. An immediate resistance is near the $20,400 level. It is near the 23.6% Fib retracement level of the recent decline from the $22,600 swing high to $19,800 low.
The next major resistance is near the $21,200 zone. There is also a crucial bearish trend line forming with resistance near $21,300 on the hourly chart of the BTC/USD pair. The trend line is close to the 50% Fib retracement level of the recent decline from the $22,600 swing high to $19,800 low.
Source: BTCUSD on TradingView.com
The main resistance is now near the $22,000 zone. A close above the $22,000 resistance might start a decent increase in the coming days. The next key resistance is near the $22,600 zone, above which the price might gain bullish momentum and test $23,000.
More Losses in BTC?
If bitcoin price fails to clear the $21,000 resistance and the trend line, it could continue to move down. An immediate support on the downside is near the $20,000 zone.
The next major support is near the $19,800 zone, below which the price might drop to $19,250. The next major support is near the $19,000 level. Any more losses might send the price towards the $18,400 level.
Technical indicators:
Hourly MACD – The MACD is now losing pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 30 level.
Major Support Levels – $20,000, followed by $19,800.
Major Resistance Levels – $20,400, $21,000 and $22,000.