Bitcoin price started a downside correction below $21,000 against the US Dollar. If BTC holds steady above the $20,000 support, it could start a fresh rise.
- Bitcoin is slowly progressing lower below the $21,000 resistance area.
- The price is trading below $20,500 and the 100 hourly simple moving average.
- There is a major downside channel forming with resistance near $20,700 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could start another upward move if it sustains above the $20,000 support area.
The price of bitcoin begins to fall
Bitcoin price made another attempt to clear the $21,000 resistance area. However, BTC failed to gain momentum above the $21,000 resistance area.
A high was formed near $21,074 and the price started a fresh downside correction. There was a break below the $20,600 and $20,500 levels. The bears pushed the price below the 50% Fib retracement level of the upward move from the $20,029 low to $21,074 high.
Bitcoin price is now trading below $20,500 and the 100 hourly simple moving average. There is also a major downside channel forming with resistance near $20,700 on the hourly chart of the BTC/USD pair.
The price is now residing in the $20,450 support area. It is near the 61.8% Fib retracement level of the upward move from $20,029 low to $21,074 high. On an upside, immediate resistance is near the $20,600 area and the 100 hourly simple moving average.
Source: BTCUSD on TradingView.com
The first major resistance is near the $20,700 level and the channel trend line. The next major resistance is still near the $21,000 level. A clear move above the $21,000 resistance could start a steady rise towards the $22,000 resistance level. Any further gains open the door for a test of the $22,500 resistance area.
More losses in BTC?
If bitcoin fails to rise above the $20,700 resistance area, it could continue to decline. On the downside, immediate support is near the $20,450 area.
The next major support is near the $20,200 area. The main support sits at $20,000. A downside break and a close below $20,000 could open the doors for a bigger downside in the near term.
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 – $20,200, followed by $20,000.
Major resistance levels – $20,600, $20,700 and $21,000.