Bitcoin started a new decline below the $22,000 support level against the US Dollar. BTC is dropping and losses could extend below the $20,500 support area.
- Bitcoin started a new low and traded below $22,000.
- The price is now trading below the $22,000 level and the 100 hourly simple moving average.
- There is a major bearish trend line forming with resistance near $21,950 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair may decline further if there is a clear move below the $20,800 level.
Bitcoin price is gaining bearish momentum
Bitcoin price started a new low After it failed to clear the $24,000 resistance area. There was a steady decline below the $23,500 and $23,000 levels.
Bears gained strength to move below the $22,500 support level and Simple moving average per 100 hours. Finally, the price traded below the support level at $21,500 and even rose below $21,000. The bottom was formed near $20.994 and the price is now consolidating losses.
On the upside, bitcoin price could face resistance near the $21,650 level. It is close to the 50% Fib retracement level of the recent decline from the $22,250 low to $20,994 low.
The next major resistance is near the $22,000 area. There is also a major bearish trend line forming with resistance near $21,950 on the hourly chart of the BTC/USD pair. The trend line is near the 76.4% Fib retracement level of the recent decline from $22,250 to the low of $20,994.
Source: BTCUSD on TradingView.com
A close above the $22,000 resistance area may set the pace for further gains. In the mentioned case, the price may rise towards the $22,500 level. The next major resistance is near the $23,000 level.
More losses in bitcoin?
If Bitcoin fails to start a recovery wave above the $21,650 level, it may continue to decline. There is immediate support on the downside near the $21,000 level.
The next major support is now near the $20,500 level. A clear breakout and close below the $20,500 support area could send the price towards $20,000 in the near term.
Hourly MACD – The MACD is now gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is well below the 50 level.
Key support levels – $21,000, followed by $20,500.
Key resistance levels – $21,650, $22,000, and $22,500.