Bitcoin is trading below the $21,000 area against the US Dollar. BTC is likely to gain bearish momentum below the $20,650 support area.
- Bitcoin struggled to rise above $21,200 and declined to $20,650.
- The price is now trading below the $21,000 level and the 100 hourly simple moving average.
- There is a major bearish trend line forming with resistance near $21,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- If there is a clear move below the $20,650 area, the pair may decline further.
Bitcoin price remains at risk
Bitcoin price failed to clear the $21,500 resistance area and started a fresh decline. The price declined below the $21,200 and $21,000 levels.
There is a clear upside move with the 50% Fib retracement level of the upward move from the $19,751 low to $21,780 high. There was also a close below the $20,800 level and the 100 hourly simple moving average.
Bitcoin tested the $20,600 and $20,500 support levels. It is now consolidating above the 61.8% Fib retracement level of the upward move from $19,751 low to $21,780 high. An immediate upside resistance is near the $21,920 level.
The next major resistance is near the $21,000 level. There is also a major bearish trend line forming with resistance near $21,000 on the hourly chart of the BTC/USD pair. A clear move above the $21,000 level could start a decent rise.
Source: BTCUSD on TradingView.com
In the specified case, the price is likely to move higher above the $21,250 level. The next major stopover could be near the $21,780 high, above which the price could extend further towards the $22,500 level.
More losses in BTC?
If bitcoin fails to clear the $21,250 resistance area, it could continue to move lower. On the downside, immediate support is near the $20,650 area and $20,500 area.
A break below the $20,650 support area could initiate a major decline. In this case, the price could decline towards the $20,000 level. Any further losses could set the pace towards the $19,200 level or $18,800 level in the coming sessions.
Technical Indicators:
Hourly MACD – The MACD is now gaining momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Key Support Level – $20,500, followed by $20,000.
Major resistance levels – $20,920, $21,250 and $22,500.