Bitcoin Turns Red, Why BTC Could Trade To New Monthly Lows

Bitcoin has been struggling to break the $21,000 barrier against the US Dollar. BTC may continue to fall unless it makes a move beyond the $20,750 resistance area.

  • Bitcoin began a new decline below $21,000 and $20,000.
  • The current price of the stock is trading at below the level of $20,500 and the simple 100-hour moving average.
  • On the hourly chart for the BTC/USD pair, there is a significant bearish trend line with resistance at $20,820 (data feed Kraken).
  • If the pair falls below $20,000, it could fall further.

Bitcoin price is sliding

The Bitcoin price was still below $21,000 and in a bearish area. The price fell below $21,000, and the bulls failed to move it higher. There was also a bearish reaction at the level of $20,800.

Price traded below the 61.8% Fib Retracement level for the crucial recovery from the $19750 swing low and $21,780 high. Bears managed to push the price lower than the support levels of $20,550, $20,500, and 20,500.

It reached the 76.4% Fib level of the critical recovery from the $19750 swing low to the $21,780 high. Bitcoin trades below the $20,000.500 and 100-hourly simple moving average.

The $20,520 mark is the immediate resistance to the upside. Next is the $20,000.750 area. A major bearish trendline is also in place with resistance close to $20,820. This hourly chart shows the BTC/USD currency pair.

Bitcoin Price

Source: BTCUSD from TradingView.com

If the price moves above $21,000, then a significant increase could occur. The price may rise to $21,250 in the above scenario. Next, the bulls could face a major challenge near the $21,750 level. If that happens, the price might rise towards $22,500.

BTC Losses:

Bitcoin could move lower if it fails to break the $21,000 resistance level. Support for the downside lies near the level of $20,220.

The price could fall further if it breaks below the $20.220 support zone. Next major support is located near $20,000. A further loss could push the price to the $18,800 mark or lower monthly.

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 – $20,220, followed by $20,000.

Major Resistance Levels – $20,520, $20,800 and $21,250.

Get more Crypto News at CFX Magazine