Bitcoin is Plunging, But It’s Too Early to Say Bulls Have Given Up

Bitcoin has been struggling to stay below the $20,000 level against the US Dollar. BTC is at risk of further losses if bulls do not protect $19,800 support area.

  • Bitcoin has shown bearish signs, below $21,000 and $20.500 levels.
  • Today, the price trades below the level of $20,400 and the simple 100-hour moving average.
  • A key bearish trendline is emerging with resistance close to $20,400 (data feed Kraken).
  • If the pair falls below $19,800, it could fall further.

Bitcoin’s Price is at Risk

The $21,000 pivot point was not reached by Bitcoin prices. Price remained below $20,500 and continued its downward slide.

A close was made below $20,250. BTC fell below $20,000, however, the bulls were still active at the $19,800 level. It has now fallen to $19 828, and is consolidating losses. It trades below the level of $20,400 and the simple 100-hour moving average.

The $20,150 level is a strong resistance to the upside. The Fib retracement level at 23.6% of the recent fall from $19,828 high to $21,188 low is very close.

Near the $20,400 area is the next major resistance. The hourly BTC/USD chart shows a significant bearish trendline with resistance close to $20,400. Trend line at 50% Fib level is the lowest point of recent fall from $19,828 high to $21,188 low.

Bitcoin Price

Source: BTCUSD from TradingView.com

If the price moves above the resistance at $20,500 then a wave of recovery could begin. The price may rise to the $20,900 mark in the above scenario. Bulls may face another major obstacle near $21,200, where the price could rise to the $21,800 mark.

BTC: More losses

Bitcoin could move lower if it fails to break the $20,500 resistance level. Support for the downside lies near $20,000

The $19 800 level is currently the support. Prices could drop below this point. Near the $18,800 level is the next support. Additional losses can push the price toward the $18,000 threshold.

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 50 level.

Major Support Levels – $20,000, followed by $19,800.

Major Resistance Levels – $20,150, $20,400 and $20,500.

Get more Crypto News at CFX Magazine