Bitcoin Price Crashes To 20K, Why Upsides Turned Attractive To Sellers

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.