Bitcoin Price Starts Constructive Correction, Why BTC Could Drop Further

Bitcoin prices reached an all-time high of $21,469 in the month before it experienced a downturn. BTC may drop to $20,600 before it begins a new increase.

  • Bitcoin accelerated above $21,000 resistance before sellers.
  • The daily simple moving average and price are trading at above 20,500.
  • On the hourly chart for the BTC/USD pair, there is a bearish trend line that forms with resistance at $21,150 (data feed Kraken).
  • A new rise could be possible if the pair can clear resistance levels of $21,150 and $25,400.

Bitcoin’s Price Drops

Bitcoin prices remained at or near the $20,600- and $20,500 levels. BTC moved faster to move beyond the $21,000 resistance area and close above the 100-hourly simple moving average.

Even higher than $21,200, the price moved. Before the bulls lost their control, a high reached near $21,469 Recently, the price fell below $21,200. Below the 23.6% Fib Retracement Level of the upward movement from $20,050 low to $21,469 high, the price fell below.

However, bulls were very active at the $20,900 level and 100-hourly simple moving average. Bitcoin prices are now above the $20,500 mark and the 100-hourly simple moving average.

Surprisingly, a resistance level is located near $21,050. At the $21,150 level is the initial major resistance. On the hourly chart for the BTC/USD pair, there is a bearish trend line that forms with resistance at $21,150.

Bitcoin Price

Source: BTCUSD at TradingView.com

The price could rise to $21,500 if it moves above the resistance at the trendline and near $21,200. Near $22,000 is the next resistance, and above that the price could rise to the $22,500 area.

BTC Losses:

Bitcoin could continue its slide if it fails to cross the $21,150 resistance level. Support for bitcoin’s downside right now is at the $20,850 and 100 hourly simple moving Average.

Near the $20,600 area is the next significant support. Price could drop further below the $20,000. The price could fall to $20,200 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 below the 50 level.

Major Support Levels – $20,600, followed by $20,200.

Major Resistance Levels – $21,150, $21,400 and $22,000.

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