Bitcoin struggled above the $21,500 resistance area against the US Dollar. Bitcoin is paring gains and may find support near the 100-hour simple moving average.
- Bitcoin surged above $21,500 before facing sellers.
- The price is now above the $20,000 level and the 100 hourly simple moving average.
- There was a break below the major uptrend line with support near $21,175 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair can find quotes near the $20,000 area or the 100 hourly simple moving average.
Bitcoin price drop
Bitcoin price started Correction upside Above the $20,000 resistance area. There was a good rally above $20,200 and $20,500.
The price rose to the 61.8% Fibonacci retracement level of the major downside from $22,950 to $17,600. Finally, there was a move above the $21,000 resistance area and the price settled above Simple moving average per 100 hours.
With that said, the bears were active above the $21,500 level. A top formed near $21,698 and the price started a downside correction.
There was a break below the 23.6% Fib retracement level of the upward move from $17,600 to the high of $21.698. Besides, there was a break below the major uptrend line with support near $21,175 on the hourly chart of the BTC/USD pair.
The price is now trading below $21,000. There is an immediate resistance on the upside near the $20,550 level. The first major resistance is near the $21,000 and $21.220 levels.
Source: BTCUSD on TradingView.com
A clear move above the $21,220 level may require a move to $21,700. Any further gains could push the price towards the $22,200 level in the upcoming sessions.
More losses in bitcoin?
If Bitcoin fails to clear the $21,220 resistance area, it may continue to move lower. There is immediate support on the downside near the $20,000 level and the 100-hour SMA.
The next major support is near the $19,650 level. It is close to the 50% Fib retracement level of the upward move from $17,600 to the high of $21,698. A downside breakout below the $19,650 support could restart the downtrend 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 now below the 50 level.
Key support levels – $20,000, followed by $19,650.
The main resistance levels are $20,500, $21,220 and $21,700.