Bitcoin lost ground and fell below $21,000 against US Dollar. BTC must remain at $20,500 in order to prevent a significant decline in the immediate future.
- Bitcoin fell below the $21,000 level and experienced an extended decline.
- The current price of the stock is trading at below $21,500 and the simple 100-hour moving average.
- A major bullish trend line is emerging with support at $20,520 (data feed Kraken).
- If the pair moves below $20,500, it could cause a major drop.
Bitcoin price reaches support
Bitcoin prices attempted to reach $22,000, but bears continued their active pursuit. The result was a steady and slow decline to $21,500.
Price fell below 50% Fib retracement of the upward swing from $19,300 swing high to $22,498 low. Now, the price trades below the $21,500 mark and the 100-hourly simple moving average.
It’s testing the $20,500 key support zone. On the hourly BTC/USD chart, there is a bullish trend line that forms with support at $20,520. It is close to the 61.8% Fib level of the upward swing from the $19300 swing low down to the $22,498 peak.
Bitcoin price could rise to $20,800 if it stays above the trendline. The upside is that the bitcoin price faces resistance at the $20,800 or $20,850 levels.
Source: BTCUSD at TradingView.com
Near the $21,250 area and the 100-hourly simple moving average is the next major resistance. The pace could increase to the $22,000 threshold if the price closes above the $21,250 resistance level. Gains above the $21,250 resistance zone could open up the possibility of a rise towards the $22,500 mark. Near the $23,200 mark is the next significant resistance.
BTC Downside Break
It could move below $20,000.500 if bitcoin does not maintain the trend line support. The $20,050 mark is an immediate support level for the downside.
Now, the nearest major support is at the $19600 level. This also marks the end of the swing low. If the support zone is reached below $19,600, the price may rise as high as $19,000 The price could move to $18,500 in this scenario.
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 zone.
Major Support Levels – $20,500, followed by $20,000.
Major Resistance Levels – $20,800, $21,250 and $22,000.
