The Bitcoin price fell below $20,600, causing further losses. BTC needs to remain above $20,000 for a sustained decline.
- Bitcoin experienced a downward correction, and it broke $20,600 as a support.
- The 100-hourly simple moving Average and price are below $20,600
- A major bearish trendline is emerging with resistance close to $21,050 in the hourly charts of the BTC/USD pairs (data feed Kraken).
- It is possible that the pair will revisit the $20,000 support zone.
Bitcoin price drops further
Bitcoin prices reached a high of $21,469 and then began a downward correction. BTC dropped below the $21,200 level and $21,000 level.
Price fell below key support levels of $20,600 and 100-hourly moving averages. Clear movement was seen below the 50% Fib Retracement level for the major increase of $20,050 to $21,470.
This decline was slower than the $20,000.500 level. Bitcoin’s price has even reached the level of 76.4% Fib-retracement for its main rise from $20,050 low to $21,470 high.
The current price is trading at below $20,000. This also includes the simple moving average of 100 hours. The upside is that the immediate resistance level nears the $20,600 mark. Near the $21,000 mark is the first significant resistance. On the hourly chart for the BTC/USD pair, there is a bearish trend line that forms with resistance at $21,050.
Source: BTCUSD from TradingView.com
If the price moves above the trendline resistance, $21,200 could trigger a new increase to $21,500. Next major resistance will be near $22,000. Above that, the price may test the $22,500 mark.
BTC: More losses
Bitcoin could continue its slide if it fails to recover from the failure of the recovery wave that occurred above $20,600. Support for the downside lies near the level of $20,380.
Near the $20,050 support zone is the next significant support. If the price moves below $20,050 it could push the market into bear territory. This would mean that the price might fall to $19 200.
Technical indicators
Hourly MACD – The MACD is now gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major Support Levels – $20,380, followed by $20,050.
Major Resistance Levels – $20,600, $21,000 and $21,200.
