Bitcoin Price Analysis: BTC Eyes Upside Break
Bitcoin price is struggling below $21,000 against the US Dollar. BTC might extend losses if it stays below the $20,500 and $21,000 resistance levels.
Bitcoin Price Analysis
Bitcoin price started a fresh decline from the $22,000 resistance zone. There was a steady decline below the $21,500 and $21,000 support levels.
The decline gained pace below the $20,500 level and the 55 simple moving average (4-hours). The bears even pushed the price below the $20,000 level. A low was formed near $19,513 and the price is now consolidating losses.
It is now trading below $21,000 and the 55 simple moving average (4-hours). There was a move above the 23.6% Fib retracement level of the downward move from the $21,925 swing high to $19,513 low.
An immediate resistance on the upside is near the $20,400 level. There is also a key bearish trend line forming with resistance near $20,400 on the 4-hours chart of the BTC/USD pair. The first major resistance is near the $20,720 level and the 55 simple moving average (4-hours).
The 50% Fib retracement level of the downward move from the $21,925 swing high to $19,513 low is also near $20,720. The next major resistance on the upside is near the $21,000 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. 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 $18,800 level.
Looking at the chart, bitcoin price is clearly trading below $21,000 and the 55 simple moving average (4-hours). Overall, the price could start a decent increase if there is a clear move above the $20,500 zone.
4 hours MACD – The MACD is now losing momentum in the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI is now above the 50 level.
Key Support Levels – $20,000 and $19,500.
Key Resistance Levels – $20,400, $20,720 and $21,000.
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