Bitcoin settled below the $21,000 support area against the US Dollar. BTC is showing bearish signs and remains at risk of a major crash below $20,000.
- Bitcoin struggled to correct the rally and remained below the $21,000 resistance area.
- The price is now trading below $20,750 and the 100 hourly simple moving average.
- There is a major bearish trend line forming with resistance near $20,250 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is consolidating above the $20,000 level and may start to decline again.
Bitcoin price faces sellers
Bitcoin price remains in a bearish zone below the $21,000 level. he was there short term recoveryHowever, the bears were active near the $20,300 and $20,350 levels.
The price started a new low and traded below the $20,000 level. It even broke the recent swing low and traded to a new weekly low of $19,619. The price is now trading below $20,750 and Simple moving average per 100 hours.
There is also a major bearish trend line forming with resistance near $20,250 on the hourly chart of the BTC/USD pair. On the upside, there is an immediate resistance near the $20,300 level. It is near the 23.6% Fib retracement level of the major decline from the $22.790 high to $19.619.
A clear move above the trend line and $20,300 could send the price towards the $20,750 resistance. The next major resistance is near the $21,200 level. It coincides with the 50% Fib retracement level of the major decline from $22,790 to the swing high of $19,619.
Source: BTCUSD on TradingView.com
A close above the $21,200 resistance may start a new increase. In the aforementioned case, the price could rise towards $22,000. Any further gains could send the price towards the $22,450 resistance area.
More losses in bitcoin?
If Bitcoin fails to clear the $20,300 resistance area, it may continue to move lower. There is immediate support to the downside near the $20,000 region.
The next major support is near the $19,600 and $19,500 levels. A break-down below the $19,500 level may send the price towards the $18,500 support level.
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 $19,500.
The key resistance levels are $20,300, $20,750, and $21,200.