Bitcoin Price Analysis: BTC Turns Red Below $20.5K
Bitcoin price is struggling below $20,000 against the US Dollar. BTC might extend losses if it stays below the $20,000 and $21,000 resistance levels.
Bitcoin Price Analysis
Bitcoin price started a major decline below the $21,000 support zone. There was a sharp bearish wave and the price even declined below the $20,500 support zone.
The bears pushed the price below the $20,200 level and the 55 simple moving average (4-hours). The price traded below the 50% Fib retracement level of the upward move from the $18,603 swing low to $22,490 high. It even broke the $19,600 support.
Besides, there was a break below a key bullish trend line with support near $20,550 on the 4-hours chart of the BTC/USD pair. The pair is now trading below $20,600 and the 55 simple moving average (4-hours).
It is also consolidating near the 76.4% Fib retracement level of the upward move from the $18,603 swing low to $22,490 high. An immediate resistance on the upside is near the $19,750 level. The first major resistance is near the $20,000 level.
The next major resistance on the upside is near the $20,550 level, above which the price could rise towards the $21,000 zone. 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 $19,250. The next key support is near the $18,720 level. Any more losses might call for a move towards the $17,500 support zone.
Looking at the chart, bitcoin price is clearly trading below $20,500 and the 55 simple moving average (4-hours). Overall, the price could continue to decline if there is a move below the $19,250 support in the near term.
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 – $19,250 and $18,720.
Key Resistance Levels – $20,000, $21,000 and $22,000.
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