Bitcoin started a downside correction with the $22,000 level against the US Dollar. BTC should stay above the $20,000 support level to avoid further losses.
- Bitcoin failed to clear $22,750 and started a sharp downside move.
- The price is now trading below $21,000 and the 100 hourly simple moving average.
- There was a break below a major bullish trend line with support near $21,810 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is consolidating above the $20,000 level with a slight bullish angle.
The price of bitcoin is $20K. dives to
Bitcoin price tried to gain strength above the $22,000 and $22,500 resistance levels. The price even climbed above the $22,750 resistance area and the 100 hourly simple moving average.
However, the price failed to gain strength and traded near the $22,768 level. As a result, there was a bearish wave below the $22,000 and $21,500 levels. There was also a move below the $21,000 level and the 100 hourly simple moving average.
Besides, there was a break below a major bullish trend line with support near $21,810 on the hourly chart of the BTC/USD pair. Bitcoin price also tested the $20,000 area. A low is formed near $19,921 and the price is now consolidating losses.
On the upside, an immediate resistance is near the $20,600 level. It is near the 23.6% Fib retracement level of the recent decline from the $22,768 high to $19,921 low.
Source: BTCUSD on TradingView.com
The next major resistance is near the $21,350 level. This coincides with the 50% Fib retracement level of the recent decline from the $22,768 high to $19,921 low. A fresh rally is likely to start above the $21,350 resistance level. In this case, the price could rise to $22,000. Any further gains could send the price towards the $22,500 resistance area.
More losses in BTC?
If bitcoin fails to clear the $21,350 resistance area, it could continue to move lower. On the downside, immediate support is near the $22,000 area.
The next major support is near the $19,500 and $19,400 levels. A break below the $19,400 level could send the price towards the $18,500 support level.
Technical Indicators:
Hourly MACD – The MACD is now losing momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now recovering from oversold levels.
Key Support Level – $20,000, followed by $19,400.
Major resistance levels – $20,600, $21,000 and $21,350.