Bitcoin Price Trims Gains, Why BTC Could Dive To New Monthly Low


Bitcoin failed to stay above the $20,000 resistance against the US Dollar. BTC is slipping and may break the $18,250 support area.

  • Bitcoin failed to stay above the $20,000 resistance and started a new decline.
  • The price is trading below $19,000 and the 100 hourly simple moving average.
  • There was a break below the major uptrend line with support near $19,450 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could accelerate lower below the $18,250 support area in the near term.

Bitcoin price restarts falling

Try bitcoin price Decent upward move Above the $19,500 resistance. BTC even rose above the $20,000 resistance and the 100 hourly simple moving average.

However, the cryptocurrency market faced fresh selling interest after the US dollar regained strength. As a result, the bitcoin price reached a peak near the $2,0383 level and started declining again. There was a sharp move below the $20,000 level.

Besides, there was a break below the major uptrend line with support near $19,450 on the hourly chart of the BTC/USD pair. The pair fell below the 61.8% Fibonacci retracement level of the upward move from the swing low of $18.645 to $20,383.

They are now trading at less than $19,000 and 100 hourly simple moving average. There is immediate support on the downside near the $18,600 level, with a bearish angle. On the upside, there is immediate resistance near the $19,000 level.

Bitcoin price

source: BTCUSD on TradingView.com

The next major resistance is near the $19,200 area and the 100 hourly simple moving average. A close above the $19,200 level may lead to an appropriate increase. In the aforementioned case, the price could rise towards $19,500. Any further gains could push the price towards the $20,000 resistance area.

More losses in bitcoin?

If Bitcoin fails to recover above the $19,200 resistance area, it may continue to decline. There is immediate support to the downside near the $18,500 region.

The next major support is near the $18,250 region. It is close to the 10,236 Fibonacci extension level of the upward move from the $18,645 swing low to $20,383. Any further losses may require a drop towards the $17,500 support area in the upcoming sessions.

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 – $18,500, followed by $18,250.

Key resistance levels – $19,000, $19,200 and $20,000.



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