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.
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.
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.