Bitcoin Turns Red, Why BTC Could Trade To New Monthly Lows


Bitcoin is struggling below the $21,000 area against the US dollar. BTC could continue to decline unless there is a clear move above the $20,750 resistance area.

  • Bitcoin started a new decline below the $21,000 and $20,500 levels.
  • The price is now trading below the $20,500 level and the 100 hourly simple moving average.
  • There is a major bearish trend line forming with resistance near $20,820 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 $20,000 area.

Bitcoin price drops

Bitcoin price remained at descending zone Below the $21,000 pivot level. The bulls struggled to push the price higher and there was a bearish reaction under the $20,800 level.

The price traded below the 61.8% Fib retracement level of the major recovery from the swing low of $19,750 to the high of $21.780. The decline was such that the bears pushed the price below the $20,550 and $20,500 support levels.

It tested the 76.4% Fib retracement level of the major recovery from the $19,750 swing low to $21.780 level. Bitcoin is now trading under $20,500 and Simple moving average per 100 hours.

There is an immediate resistance on the upside near the $20,520 level. The next major resistance is near the $20,750 region. There is also a major bearish trend line forming with resistance near $20,820 on the hourly chart of the BTC/USD pair.

Bitcoin price

Source: BTCUSD on TradingView.com

A clear move above the trend line resistance and then $21,000 could lead to a decent increase. In the mentioned case, the price may rise above the $21,250 level. The next major hurdle for the bulls could be near the $21.750 area, above which the price could rise towards the $22,500 level.

More losses in bitcoin?

If Bitcoin fails to clear the $21,000 resistance area, it may continue to decline. There is immediate support on the downside near the $20,220 level.

A break-down below the $20,220 support area could push the price even lower. The next major support is near the $20,000 area. Any further losses could send the price towards the $18,800 level or a new monthly low.

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 – $20,220, followed by $20,000.

Key resistance levels – $20,520, $20,800 and $21,250.



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