Bitcoin traded at $19,600 below the US Dollar and extended its losses. If Bitcoin stays above $19,300 it could begin a wave of recovery.
- Bitcoin was in a bearish zone, and it settled below $20,000
- The price currently trades below $19600, and below the 100 hourly simple moving mean.
- A major bearish trend line is emerging with resistance at $19,600 (data feed Kraken).
- A recovery wave could be initiated by the pair if it remains above the $19,000.300 support zone.
Bitcoin Price Reaches Key Support
The Bitcoin price fell below $21,000 and then rebounded. The bears gained power and drove the bitcoin price lower than the $20,000 support area.
Even below $19,600 the support zone, the decline continued. The price has fallen to $19256, and is consolidating at $19300, where it is near the major support. The price is trading at a level below $19,600 and the simple 100-hour moving average.
It could begin a wave of recovery if bitcoin remains above the $19,000.00 level. The upside is that the price may resist near $19,550 or $19,600.
A major bearish trendline is also in place with resistance close to $19,600. This can be seen on the hourly charts of BTC/USD. Next is $20,000 (the zone of the recent collapse). The 23.6% Fib level is the retracement point of the downmove from $22,498 high to $19,256 lowest.
Source: BTCUSD from TradingView.com
The pace could be set for testing the 100 hourly simple moving mean if the resistance level is breached at $20,000 If there are more gains, it could be possible to move toward the 50% Fib level of the downmove from $22,498 swing high and $19,256 low. Next is resistance at the $21,200 level.
BTC Losses:
It could move lower if bitcoin does not start a wave of recovery above $20,000 Support for the downside lies near $19300.
Near the $19 250 level, or the most recent low, is the next significant support. Losses could be accelerated if the support zone of $19,250 is breached. There is the possibility of the market moving towards $18,500 in the above scenario.
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 in the oversold zone.
Major Support Levels – $19,300, followed by $18,500.
Major Resistance Levels – $19,600, $20,000 and $20,500.
