Bitcoin Price Turns Red as Bears Take Over Crypto Market


Bitcoin is showing bearish signs below the $20,000 support area against the US Dollar. BTC could accelerate further below the $19,500 support area.

  • Bitcoin started a new low and traded below the $20,000 support.
  • The price is now trading below $2,200 and the 100 hourly simple moving average.
  • There is a major bearish trend line forming with resistance near $20,050 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could start a significant decline if it breaks through the $19,500 support area.

Bitcoin price is still at risk

Bitcoin price attempted a rebound wave above $20,300 resistance level. However, there was no bullish break and the price remained in a descending area below $20,500.

Recently, Ethereum experienced a significant bearish reaction below the $1,500 support level. As a result, BTC also moved down a few pips and dropped below the $20,000 support. It traded even below $19,600 and tested the $19,500 support area.

The bottom formed near $19.509 and the price is now consolidating losses. Bitcoin price is now trading below $2,0200 and the 100 hourly simple moving average.

On the upside, there is an immediate resistance near the $20,000 level. There is also a major bearish trend line forming with resistance near $20,050 on the hourly chart of the BTC/USD pair. Besides, the 23.6% Fib retracement level of the major decline from the $22.790 high to $19,509 is just above the trend line.

The next major resistance is near the $21,000 level and Simple moving average per 100 hours. It coincides with the 50% Fib retracement level of the major decline from $22.790 to the high swing high to $19,509.

Bitcoin price

Source: BTCUSD on TradingView.com

A close above the $21,000 resistance may start a new increase. In the aforementioned case, the price could rise towards $21,400. Any further gains could send the price towards the $22,000 resistance area.

More losses in bitcoin?

If bitcoin fails to start a wave of recovery above the $20,000 resistance area, it may continue to move lower. There is immediate support to the downside near the $19,500 region.

The next major support is near the $19,200 levels. A clear move below the $19,500 and $19,200 levels may open the doors for 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 BTC/USD is now below the 50 level.

Key support levels – $19,500, followed by $19,200.

Key resistance levels – $20,000, $20,050 and $20,300.



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