Bitcoin Drops 20%, Why The Bulls Must Protect $20K

Bitcoin continued to fall below $25,000 against the US dollar. BTC has fallen 20%, and is approaching $20,000 of support.

  • Bitcoin continued to fall below $23,500 and $22,500 support level.
  • The current price of the stock is trading at below $25,000 and the simple 100-hour moving average.
  • On the hourly chart for the BTC/USD pair, there is an apparent connecting bearish trend line with resistance close to $22,100. (Data feed from Kraken).
  • To avoid further downsides, the pair should keep above $20,000 of support.

Nosedives for Bitcoin Prices

The Bitcoin price did not start a rebound wave, and continued to fall below $25,000 support. To move below the $23,500 resistance zone, the bears gained power.

This price dropped over 20%, and it even fell below the $22,000 level. Near $20,824 is a multi-week low. The market is trading in a downtrend. The closing price was below $22,000 and the simple 100-hour moving average.

Bitcoin has been consolidating at the $21,000 mark. Near the $21,800 mark is an immediate resistance to the upside. Near the $22,000 mark is the first significant resistance.

On the hourly BTC/USD chart, there is a connected bearish trend line that forms with resistance at $22,100. The Fib level is at 23.6%, which corresponds to the dip from $28,300 high to $20.824 low.

Bitcoin Price

Source: BTCUSD at TradingView.com

A clear break above the trend line could lead to a rise towards $23,000. Resistance is located near the $25,000 mark. The Fib level at 50% is the level that marked the recent fall from $28,300 swing high, to $20,824 low.

BTC Losses:

It could fall further if bitcoin does not clear the $22,100 resistance area and trend line. The $21,000 level is a support area for the downside.

Near the $20,000 support, is the next significant support. Price could drop further below $20,000 if there is a downside breakout. If this happens, then the price might drop below the $18,500 support level.

Indicators technical

Hourly MACD – The MACD is now gaining pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now in the oversold area.

Major Support Levels – $21,000, followed by $20,000.

Major Resistance Levels – $22,000, $22,100 and $23,000.

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