Bitcoin is Plunging, But It’s Too Early to Say Bulls Have Given Up


Bitcoin is struggling below the $20,000 area against the US dollar. BTC remains at risk of further losses if the bulls fail to protect the $19,800 support area.

  • Bitcoin is showing bearish signs below the $21,000 and $20,500 levels.
  • The price is now trading below the $20,400 level and the 100 hourly simple moving average.
  • There is a major bearish trend line forming with resistance near $20,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could drop further if there is a clear movement below the $19,800 area.

Bitcoin price is still at risk

Bitcoin price failed to recover Above the pivot level $21,000. The price remained in a bearish zone and extended its decline below the $20,500 support area.

There was also a close below the $20,250 level. BTC rose below the $20,000 level, but the bulls were active near the $19,800 level. The bottom was formed near $1,988 and the price is now consolidating losses. It is now trading below the $20,400 level and Simple moving average per 100 hours.

There is an immediate resistance on the upside near the $20,150 level. It is close to the 23.6% Fib retracement level of the recent decline from the swing high $21,188 to $19,828.

The next major resistance is near the $20,400 region. There is also a major bearish trend line forming with resistance near $20,400 on the hourly chart of the BTC/USD pair. The trend line is near the 50% Fib retracement level of the recent decline from the $21,188 swing high to $19,828 low.

Bitcoin price

Source: BTCUSD on TradingView.com

A clear move above trend line resistance and then $20,500 could start a recovery wave. In the mentioned case, the price could rise towards the $20,900 level. The next major hurdle for the bulls could be near the $21,200 area, above which the price could rise towards the $21,800 level.

More losses in bitcoin?

If Bitcoin fails to clear the $20,500 resistance area, it may continue to move lower. There is immediate support on the downside near the $20,000 level.

The main support is now near the $19,800 level, below which the price could accelerate lower. The next major support is near the $18,800 area. Any further losses could push the price towards the $18,000 level.

Technical indicators:

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

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

Key support levels – $20,000, followed by $19,800.

Key resistance levels – $20150, $20,400, and $20,500.



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