Bitcoin price was trading at a new monthly high of $21,469 before starting a downside correction. BTC could drop to $20,600 before starting a fresh rise.
- Bitcoin gained momentum above the $21,000 resistance area before facing sellers.
- The price is trading above $20,500 and the 100 hourly simple moving average.
- There is a major bearish trend line forming with resistance near $21,150 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is likely to rise again if it clears the $21,150 and $21,400 resistance levels.
bitcoin price goes down
Bitcoin price remained well bid above the $20,600 and $20,500 levels. BTC gained momentum above the $21,000 resistance area and the 100 hourly simple moving average.
The price also moved higher above the $21,200 level. A high was formed near $21,469 before the bulls lost control. Recently, there was a downside correction below the $21,200 level. The price declined from the 23.6% Fib retracement level of the $20,050 low to $21,469 high.
However, the bulls were active near the $20,900 area and the 100 hourly simple moving average. Bitcoin price is now trading above $20,500 and the 100 hourly simple moving average.
On the upside, an immediate resistance is near the $21,050 level. The first major resistance is near the $21,150 level. There is also a major bearish trend line forming with resistance near $21,150 on the hourly chart of the BTC/USD pair.
Source: BTCUSD on TradingView.com
The trend line resistance and a clear move above $21,200 could send the price towards $21,500. The next major resistance is near the $22,000 level, above which the price could move towards the $22,500 area.
More losses in BTC?
If bitcoin fails to rise above the $21,150 resistance area, it could resume the decline. An immediate support on the downside is near the $20,850 area and the 100 hourly simple moving average.
The next major support is near the $20,600 area. A clear move below the $20,600 support could push the price further lower. In this case, the price could decline towards the $20,200 level.
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 – $20,600, followed by $20,200.
Key Resistance Levels – $21,150, $21,400 and $22,000.