Bitcoin failed to recover above $23,000 against the US Dollar. BTC started a fresh decline and remains at a risk of a move below the $20,000 support.
- Bitcoin failed to climb above $23,000 and started a fresh decline.
- The price is now trading below the $22,000 level and the 100 hourly simple moving average.
- There is a new connecting 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 a risk of a move below the $20,000 support zone in the near term.
Bitcoin Price Revisits $20K
Bitcoin price attempted a fresh increase above the $22,000 level. However, the bears were active near the $22,800 and $23,000 levels. A high was formed near $22,950 and the price started a fresh decline.
There was a clear move below the $21,500 level and the price settled below the 100 hourly simple moving average. The price even declined below the $21,000 level and traded close to the $20,000 support zone. A low was formed near $20,200 and the price is now attempting an upside correction.
There was a move above the $20,500 resistance level. Bitcoin is now testing the 23.6% Fib retracement level of the recent decline from the $22,950 high to $20,200 low.
There is also a new connecting bearish trend line forming with resistance near $20,850 on the hourly chart of the BTC/USD pair. An immediate resistance on the upside is near the $21,000 level. The first major resistance is near the $21,550 level.
Source: BTCUSD on TradingView.com
The 50% Fib retracement level of the recent decline from the $22,950 high to $20,200 low is also near the $21,550 level. Any more gains might 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.
Fresh Decline in BTC?
If bitcoin fails to clear the $22,000 resistance zone and the trend line, it could start a fresh decline. An immediate support on the downside is near the $20,200 level.
The next major support is near the $20,000 level. A downside break below the $20,000 support could spark a sharp decline. In the stated case, the price could test $18,800.
Hourly MACD – The MACD is now losing pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major Support Levels – $20,200, followed by $20,000.
Major Resistance Levels – $21,550, $22,300 and $23,000.
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Author: Aayush Jindal