Bitcoin Price Trims Gains, Why $20K Is The Key To Fresh Increase


Bitcoin has started a sharp downward correction below the $22,000 level against the US Dollar. BTC must stay above the $20,000 support to avoid further losses.

  • Bitcoin failed to liquidate $22,750 and started a sharp bearish move.
  • The price is now trading below $21,000 and the 100 hourly simple moving average.
  • There was a break below the major uptrend line with support near $21,810 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair is consolidating above the $20,000 level, with a slight upward angle.

Bitcoin price reaches 20 thousand dollars

Bitcoin price tried to gain strength above The $22,000 and $22,500 resistance levels. The price even rose above the $22,750 resistance area and the 100 hourly simple moving average.

However, the price failed to gain traction and surpassed the $22,768 level. As a result, there was a downside wave below the $22,000 and $21,500 levels. There was also a move below the $21,000 level and Simple moving average per 100 hours.

Besides, there was a break below the major uptrend line with support near $21,810 on the hourly chart of the BTC/USD pair. Bitcoin price even tested the $20,000 area. The bottom was formed near $19,921 and the price is now consolidating losses.

On the upside, there is an immediate resistance near the $20,600 level. It is close to the 23.6% Fib retracement level of the recent decline from $22.768 and the swing high to $19,921 low.

Bitcoin price

Source: BTCUSD on TradingView.com

The next major resistance is near the $21,350 level. It coincides with the 50% Fib retracement level of the recent decline from the $22,768 swing high to $19,921 low. A close above the $21,350 resistance could start a new rally. In the aforementioned case, the price could rise towards $22,000. Any further gains could send the price towards the $22,500 resistance area.

More losses in bitcoin?

If Bitcoin fails to clear the $21,350 resistance area, it may continue to move lower. There is immediate support to the downside near the $22,000 region.

The next major support is near the $19,500 and $19,400 levels. A break-down below the $19,400 level may send the price towards the $18,500 support level.

Technical indicators:

Hourly MACD – The MACD is now losing its momentum in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for Bitcoin/USD is now recovering from oversold levels.

Key support levels – $20,000, followed by $19,400.

The main resistance levels are $20,600, $21,000, and $21,350.



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