TA: Bitcoin Turns Red, Why BTC Might Trade New Monthly Lows – NewsBTC
Bitcoin is struggling below the $21,000 area against the US Dollar. As long as there is no clear move above the $20,750 resistance area, BTC could continue to move lower.
- Bitcoin started a fresh 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).
- If there is a clear move below the $20,000 area, the pair may decline further.
bitcoin price is slipping
Bitcoin price remained in a bearish zone below the $21,000 pivot level. The bulls struggled to push the price higher and there was a bearish reaction below the $20,800 level.
The price was trading below the 61.8% Fib retracement level of the key recovery level from $19,750 low at $21,780 high. 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 key recovery level from $19,750 low to $21,780 high. Bitcoin is now trading below the $20,500 level and the 100 hourly simple moving average.
An immediate upside resistance is near the $20,520 level. The next major resistance is near the $20,750 area. There is also a major bearish trend line forming with resistance near $20,820 on the hourly chart of the BTC/USD pair.
Source: BTCUSD at TradingView.com
A clear move above the trend line resistance and then $21,000 could start a decent rise. In the specified case, the price is likely to move higher above the $21,250 level. The next major hurdle for the bulls could be near the $21,750 area, above which the price could move towards the $22,500 level.
More losses in BTC?
If bitcoin fails to clear the $21,000 resistance area, it could continue to decline. On the downside, immediate support is near the $20,220 level.
A downside break below the $20,220 support area could push the price further 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 momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Key Support Level – $20,220, followed by $20,000.
Major resistance levels – $20,520, $20,800 and $21,250.
