Bitcoin Price Analysis: BTC Drops Sharply, Key Support Nearby
Bitcoin price is struggling below $21,000 against the US Dollar. BTC might extend losses if it stays below the $20,800 and $21,000 resistance levels.
Bitcoin Price Analysis
Bitcoin price started a fresh decline from the $22,800 resistance zone. There was a steady decline below the $22,500 and $22,000 support levels.
The decline gained pace below the $21,500 level and the 55 simple moving average (4-hours). There was a break below a key bullish trend line with support near $20,800 on the 4-hours chart of the BTC/USD pair. Besides, there was a clear move below the 50% Fib retracement level of the upward move from the $18,527 swing low to $22,800 high.
The bears even pushed the price below the $21,000 level. The price tested the $20,000 support zone and is now consolidating losses.
It is trading below $21,000 and the 55 simple moving average (4-hours). An immediate resistance on the upside is near the $20,550 level and the 55 simple moving average (4-hours). The first major resistance is near the $20,800 level.
The main resistance sits near the $21,250 level. Any more gains might send the price towards the $22,000 zone. If there is no upside break, the price might continue to decline below $20,000 or the 61.8% Fib retracement level of the upward move from the $18,527 swing low to $22,800 high.
The next key support is near the $19,500 level, below which the price might accelerate lower. In the stated case, the price could decline towards the $18,500 level.
Bitcoin Price
Looking at the chart, bitcoin price is clearly trading below $21,000 and the 55 simple moving average (4-hours). Overall, the price remains at a risk of more losses below the $21,250 level in the near term.
Technical Indicators
4 hours MACD – The MACD is now gaining momentum in the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI is now below the 50 level.
Key Support Levels – $20,000 and $19,500.
Key Resistance Levels – $20,550, $21,250 and $22,000.
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