Bitcoin Price Takes A Hit, This Support Is The Key


Bitcoin extended its losses and traded at less than $20,000 against the US dollar. BTC could revisit the key support area at $19,500, where the bears could be tested.

  • Bitcoin is following a downtrend below the $20,500 pivot level.
  • The price is now trading below the $20,500 level and the 100 hourly simple moving average.
  • There was a break below the major uptrend line with support near $20,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair may find support near the $19,500 and $19,350 levels.

Bitcoin price increases losses

Bitcoin price started a new low After it failed to stay above the $22,000 level. There was a steady decline below the $21,200 and $21,000 levels.

The price moved below the 61.8% Fibonacci retracement level of the upward move from the $1,301 low-swing to $22,500 swing high. Besides, there was a break below the major uptrend line with support near $20,500 on the hourly chart of the BTC/USD pair.

Bitcoin price is now trading under $20,500 and Simple moving average per 100 hours. It even settled below the 76.4% Fib retracement level of the upward move from the $1,301 low-swing to $22,500 swing high.

However, a significant support awaits near $19,500. On the upside, the price could resist near the $20,000 and $20,150 levels.

Bitcoin price

Source: BTCUSD on TradingView.com

The next major resistance is near the $20,500 region (the last breakdown area). A close above the $20,500 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 $21,750 level. The next major resistance is near the $22,000 level.

More losses in bitcoin?

If Bitcoin fails to start a recovery wave above the $20,150 level, it may continue to decline. There is immediate support on the downside near the $19,580 level.

The next major support is now near the $19,300 level, or the recent swing low. A close below the $19,300 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 – $19,600, followed by $19,300.

Key resistance levels – $20,150, $20,500, and $21,750.



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