Bitcoin Remains In Downtrend, Risk of Drop Below $20K


Bitcoin failed to recover above $23,000 against the US Dollar. BTC has started a new low and is still at risk of moving below the $20,000 support.

  • Bitcoin failed to rise above $23,000 and started a new decline.
  • The price is now trading below the $22,000 level and the 100 hourly simple moving average.
  • There is a new solid bearish trend line forming with resistance near $20,850 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair remains at risk of moving below the $20,000 support area in the near term.

Bitcoin price reconsiders 20 thousand dollars

Bitcoin price attempted a new rally above $22,000. However, the bears were active near the $22,800 and $23,000 levels. A high was formed near $22,950 and the price started new low.

There was a clear move below the $21,500 level and the price settled below 100-hour simple moving average. The price broke below the $21,000 level and traded near the $20,000 support area. A bottom formed near $2,0200 and the price is now attempting an upward correction.

There was a move above the $20,500 resistance level. Bitcoin is now testing the 23.6% Fibonacci retracement level of the recent decline from $22,950 to the $22,200 low.

There is also a new solid bearish trend line forming with resistance near $20,850 on the hourly chart of the BTC/USD pair. There is immediate resistance on the upside near the $21,000 level. The first major resistance is near the $21,550 level.

Bitcoin price

Source: BTCUSD on TradingView.com

The 50% Fib retracement level of the recent decline from $22,950 to $20,200 is also near the $21,550 level. Any further gains could send the price towards the $22,300 level or the 100 hourly simple moving average. The main resistance is still near the $23,000 level.

A new drop in bitcoin?

If Bitcoin fails to break above the $22,000 resistance area and trend line, it may start a new decline. There is immediate support on the downside near the $2,0200 level.

The next major support is near the $20,000 level. A downside breakout below the $20,000 support could trigger a sharp decline. In the mentioned case, the price could test $18,800.

Technical indicators:

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

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

Key support levels – $2,0200, followed by $20,000.

Key resistance levels – $21,550, $22,300 and $23,000.



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