Bitcoin Price Makes U-Turn, Why BTC Could Tumble to $18K


Bitcoin started a new decline below the $20,000 support area against the US Dollar. BTC traded below $19,000 and is still at risk of moving to $18,000.

  • Bitcoin started a new low and traded below the $19,500 support.
  • The price is now trading below $19,200 and the 100 hourly simple moving average.
  • There was a break below the connecting uptrend line with support at $19850 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair is now at risk of moving towards the $18,000 support area in the near term.

Bitcoin price starts a new decline

Bitcoin price fails to surpass $20,500 resistance level. BTC started a new low and traded below the $20,000 and $19,500 support levels.

Besides, there was a break below the connecting uptrend line with support at $1,950 on the hourly chart of the BTC/USD pair. The pair accelerated lower below the $19,200 level and the 100 hourly simple moving average. It even fell below $19,000 and traded as low as $18706.

Bitcoin price is now consolidating losses below $19,200 and 100 hourly simple moving average. On the upside, there is an immediate resistance near the $19050 level. It is near the 23.6% Fib retracement level of the recent decline from the 20197 rally to the 18,706 low.

The next major resistance is near the $19,350 level. It coincides with the 50% Fib retracement level of the recent decline from the high-swinging USD 20197 to the USD 18,706 low.

Bitcoin price

Source: BTCUSD on TradingView.com

The major barrier is now forming near the $20,000 area and the 100 hourly simple moving average. A close above the $20,000 resistance may start a new increase. In the mentioned case, the price could rise towards $21,200.

More losses in bitcoin?

If Bitcoin fails to start a recovery wave above the $19050 resistance area, it may continue to move lower. There is immediate support to the downside near the $18,700 region.

The next major support is near the $18,550 level. A clear move below $18,700 and $18.550 could open the door for a move towards the $18,000 level.

Technical indicators:

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.

Key support levels – $18,700, followed by $18,550.

Key resistance levels – $1,050, $19,300, and $19,500.



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