Bitcoin has been showing bearish signals below the $20,000 support area against the US Dollar. BTC might accelerate below the $19 500 support zone.
- Bitcoin experienced a new decline, trading below $20,000 resistance.
- The current price trades below $20,200.
- On the hourly chart for the BTC/USD pair, there is a significant bearish trend line with resistance at $20,000.50 (data feed Kraken).
- A break of the $19,000.500 support zone could lead to a major decline in the pair.
Bitcoin price remains at risk
A recovery wave was attempted by Bitcoin prices above the resistance of $20,300. But, the upside move was not possible and Bitcoin price remains below $20,500.
Recent Ethereum bearish reactions below $1,500 resistance led to a significant decline. BTC fell below the $20,000 level and moved a few more points. BTC traded even below $19600, and it tested the $19500 support zone.
The price has been consolidating its losses and has formed a low near $19,509. Bitcoin is trading at below $20,000. This price also includes the simple 100-hour moving average.
A resistance level of near $20,000 is available on the upside. A major bearish trendline is also visible on the hourly BTC/USD chart with resistance close to $20,050. Aside from that, the trend line just above is the 23.6% Fib level, which corresponds to the major decline of $22,790 high to $19.509 low.
It is located near the $21,000 and 100 hourly simple moving levels. This coincides with 50% Fib Retracement of the major decline from $22,790 swing high, to $19.509 low.
Source: BTCUSD from TradingView.com
An increase of 1% could be possible if the resistance is reached at $21,000. If this happens, then the price might rise to $21,400. The price could reach the $22,000 threshold if there are more gains.
BTC Losses:
Bitcoin could fall further if it fails to recover from the $20,000 resistance level. Support for the downside lies near $19,000.
Near the $19,000.200 level is the next support. If the levels are moved below $19,500 or $19,200, it could open up the possibility of a rise towards $18,500.
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 – $19,500, followed by $19,200.
Major Resistance Levels – $20,000, $20,050 and $20,300.