Bitcoin Price Trims Gains, Key Breakdown Support Nearby


Bitcoin pared its gains and fell below $21,000 against the US dollar. BTC must stay above $20,500 to avoid a major drop in the near term.

  • Bitcoin failed to hold above the $21,000 support level and its extended decline.
  • The price is now trading below the $21,500 level and the 100 hourly simple moving average.
  • There is a major bullish trend line forming with support near $20,520 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could start another significant decline if there is a clear move below $20,500.

Bitcoin price hits support

Bitcoin price tried to close above $22,000, but Bears remain active. As a result, there was a slow and steady decline below the $21,500 level.

The price dropped below the 50% Fib retracement level of the upward move from the $19,300 swing low to $22,498 high. The price is now trading below the $21,500 level and Simple moving average per 100 hours.

It is testing the key $20,500 support area. There is also a major bullish trend line forming with support near $20,520 on the hourly chart of the BTC/USD pair. The trend line is near the 61.8% Fib retracement level of the upward move from the $19,300 swing low to $22,498 high.

If bitcoin price stays above the trend line, it may correct above $20,800. On the upside, the price is facing resistance near the $20,800 and $20.850 levels.

Bitcoin price

Source: BTCUSD on TradingView.com

The next major resistance is near the $21,250 area and the 100 hourly simple moving average. A close above the $21,250 resistance area could set the pace for a test of the $22,000 level. Any further gains could open the door for an increase towards the $22,500 level. The next major resistance is near the $23,200 level.

Broken downside in bitcoin?

If Bitcoin fails to stay above trend line support, it may continue to drop below $20,500. There is immediate support on the downside near the $20,050 level.

The next major support is now near the $19,600 level or the latest swing low. A close below the $19,600 support area could push the price to $19,000. 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 – $20,500, followed by $20,000.

The main resistance levels are $20,800, $21,250 and $22,000.



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