Bitcoin Price Trades Heavy, Why BTC Could Soon Test $20K

Bitcoin’s value against the US dollar is declining to $21,500. BTC continues to consolidate and is at risk of moving towards $20,000 support.

  • Bitcoin’s value is rising to $21,000 but it faces many challenges.
  • The price traded above $21,200 and the simple 100-hour moving average.
  • On the hourly chart for the BTC/USD pair, there is a bearish trend line that forms with resistance at $22,500 (data feed Kraken).
  • However, the upsides of this pair might not be as high as $22,000.

Bitcoin Price Faces Hurdles

Bitcoin prices remained above the $21,000 level. BTC established a base of $21,000 above the support zone and began a consolidation phase.

The price moved slightly higher than the $21,250 or $21,350 levels. Price was able surpassing the $21,500 mark and the simple 100 hour moving average. However, bears were still active in the $21,640 resistance area.

This seems to indicate that the 23.6% Fib Retracement level for the main fall from the $24,415 swing low to the $20,797 high is serving as strong resistance. Bitcoin prices are now above the $21,200 and 100 hourly simple moving Average levels.

To the upside, immediate resistance lies near the $21,500 or $21,640 levels. Near the $22,000 mark is the first significant resistance to the upside.

A break above $22,000 could see the price rise to the $22,500 level. The hourly BTC/USD chart shows a significant bearish trendline with resistance close to $22,500.

Bitcoin Price

Source: BTCUSD from TradingView.com

Trend line at 50% Fib Retracement Level of main fall from $24,415 swing high, to $20797 low. The price could move towards the $23,000 threshold if it gains more.

BTC’s Latest Decline

It could fall further if bitcoin does not clear the $22,000 barrier. The $21,000 level is a support area for the downside.

Now, the 20,800 support is near. An obvious move below the $20,000.800 level and the previous swing low could trigger a new decline. If this happens, then the price may fall to $20,000

Indicators technical

Hourly MACD – The MACD is now losing pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now near the 50 level.

Major Support Levels – $21,000, followed by $20,800.

Major Resistance Levels – $21,640, $22,000 and $22,500.

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