Bitcoin began a steep downside correction below $22,000 against the US Dollar. BTC needs to remain at or above the $20,000 level in order not to suffer further losses.
- Bitcoin crashed to $22,750. This triggered a sharp downturn.
- The 100-hourly moving average and price are now below $21,000
- The hourly BTC/USD chart showed a breaking below a bullish trend line, with support close to $21,810 (datafeed from Kraken).
- This pair has been consolidating at the $20,000 mark, and there is a small bullish tilt.
Bitcoin Prices Drop to $20K
Bitcoin’s price tried to climb above the $22,000- and $22,500-resistance levels. Even higher than the $22,750 resistance level and the 100-hourly simple moving average, the price spiked.
The price did not gain any strength, and it topped at $22,768. There was therefore a bearish trend below $22,000 and $21,500. Also, the move fell below the $21,000 mark and the 100 hourly simple moving mean.
A break was also observed below the key bullish trendline with support at $21,810 (hourly chart BTC/USD). Bitcoin even crossed the $20,000 mark. Bitcoin price now consolidating losses after a low near $19921.
The $20,600 level provides immediate support. The Fib level at 23.6% is the retracement of the decline from $22,768 high to $19 921 low.
Source: BTCUSD from TradingView.com
Near the $21,350 mark is the next significant resistance. The 50% Fib level corresponds to the most recent fall from $19,921 high to $22,768 low. The potential for a new surge could be seen if the price reaches $21,350. The price could rise to $22,000 in this scenario. The price could reach the $22,500 threshold if there are more gains.
BTC Losses:
It could fall further if bitcoin does not clear the $21,350 barrier. The $22,000 area is a support zone for the downside.
Next major support will be near $19,500 or $19,400. A decline below $19400 could push the price to the $18,500 support.
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 recovering from the oversold levels.
Major Support Levels – $20,000, followed by $19,400.
Major Resistance Levels – $20,600, $21,000 and $21,350.