TA: Bitcoin Price At Major Risk of A Breakdown Below $20K: Here’s Why

Bitcoin traded below $21,000 against the US Dollar. BTC has been showing bearish sign and still faces a significant decline below $20,000.

  • Bitcoin was unable to move higher but remained under the $21,000 resistance.
  • The current price of the stock is trading at below 20.750, as well as 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 $20,250 (data feed Kraken).
  • It is currently consolidating over the $20,000 mark and may begin a decline.

Bitcoin price faces sellers

The Bitcoin price was still below $21,000. Although there was some short-term relief, the bears were still active at the $20,300 to $20,350 levels.

Price fell again and was trading below $20,000 Even breaking the previous swing low, it traded at a new weekly high of $19-609. Now, the price trades below 20.750 as well as the 100-hourly simple moving average.

A key bearish trendline is also in place with resistance close to $20,250. This can be seen on the hourly charts of BTC/USD. The $20,300 mark is the immediate resistance. This is close to the 23.6% Fib Retracement Level of the Key Drop from the $22,790 swing high and $19,619 lower.

If the trend line is crossed, the price may move towards $20,300. Next is $21,200. This coincides with 50% Fib Retracement of the pivotal drop from $22,790 high to $19 619 low.

Bitcoin Price

Source: BTCUSD from TradingView.com

The $21,200 resistance may be surpassed to trigger a fresh rise. If this happens, then the price might rise to around $22,000. The price could reach the $22,450 threshold if it gains more.

BTC: More losses

It could fall further if bitcoin does not clear the $20,000.00 resistance zone. The $20,000 area is a support zone for the downside.

Next major support will be near $19600 and $19500. If the price falls below $19,500, it could push the price to the $18,500 support.

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 – $20,000, followed by $19,500.

Major Resistance Levels – $20,300, $20,750 and $21,200.

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