Bitcoin Price Could Recover If It Holds This Key Support


Bitcoin extended its losses and traded at less than $19,600 against the US dollar. BTC could start a recovery wave if it stays above the $19,300 support area.

  • Bitcoin remained in bearish territory and settled below the $20,000 level.
  • The price is now trading below the $19,600 level and the 100 hourly simple moving average.
  • There is a major bearish trend line forming with resistance near $19,600 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair may start a recovery wave if it stays above the $19,300 support area.

Bitcoin price reaches major support

Bitcoin price started a new low Below the $21,000 support area. The bears gained strength and pushed the price below the $20,000 support area.

The decline extended even below the $19,600 support area. A bottom was formed near $19,256 and the price is now consolidating near the key support level at $19,300. It is also trading below the $19,600 level and Simple moving average per 100 hours.

If bitcoin stays above $19,300, it could start a rally. On the upside, the price could resist near the $19,550 and $19,600 levels.

There is also a major bearish trend line forming with resistance near $19,600 on the hourly chart of the BTC/USD pair. The next major resistance is near the $20,000 area (the last breakdown area). It is near the 23.6% Fib retracement level of the downside move from $22,498 to the $19,256 swing high.

Bitcoin price

Source: BTCUSD on TradingView.com

A close above the $20,000 resistance area could set the pace for a test of the 100-hourly simple moving average. Any further gains could open the door for a move towards the 50% Fib retracement level of the downside move from the $22,498 swing high to $19,256 low. The next major resistance is near the $21,200 level.

More losses in bitcoin?

If Bitcoin fails to start a recovery wave above the $20,000 level, it may continue to decline. There is immediate support on the downside near the $19,300 level.

The next major support is now near the $19,250 level or the recent low. A close below the $19,250 support area could accelerate losses. In the mentioned case, there is a risk of a move towards the $18,500 level.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for Bitcoin/USD is now in the oversold territory.

Key support levels – $19,300, followed by $18,500.

The main resistance levels are $19,600, $20,000 and $20,500.



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