Bitcoin extended its losses below the $21,000 support level against the US Dollar. BTC is consolidating and any rallies could face hurdles near $21,500.
- Bitcoin remained in bearish territory and traded below $21,000.
- The price is now trading below the $21,500 level and the 100 hourly simple moving average.
- There is a major bearish trend line forming with resistance near $21,650 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair may correct higher but gains may be limited above $21,500.
Bitcoin price is still in bearish territory
Bitcoin price remained at descending zone After it settled below the $22,000 support area. It consolidated near the $21,000 area for a while before there were more losses.
The price dropped below $21,000 but the downsides were limited. The bottom was formed near $20,750 and the price is now consolidating losses. It is now trading below the $21,500 level Simple moving average per 100 hours.
There was a slight rise above the $21,000 level. The price got rid of the 23.6% Fib retracement level of the recent decline from the $22,250 swing high to $20,750.
On the upside, bitcoin price could face resistance near the $21,500 level. It is close to the 50% Fib retracement level of the recent decline from $22,250 to the high of $20,750. The next major resistance is near the $21,650 area. There is also a major bearish trend line forming with resistance near $21,650 on the hourly chart of the BTC/USD pair.
Source: BTCUSD on TradingView.com
A close above the $21,650 resistance area could set an appropriate pace of increase. In the mentioned case, the price may rise towards the $22,000 level. The next major resistance is near the $22,500 level.
More losses in bitcoin?
If Bitcoin fails to start a recovery wave above the $21,500 level, it may continue to decline. There is immediate support on the downside near the $21,000 level.
The next major support is now near the $20,750 and $20,500 levels. A close below the $20,500 support area may increase selling pressure and the price may test $20,000 in the near term.
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 approaching the 50 level.
Key support levels – $21,000, followed by $20,750.
The main resistance levels are $21,500, $21,650, and $22,000.