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TA: Bitcoin Price Turns Red as Bears Take Over Crypto Market

NewsBTC

Cryptocoins News / NewsBTC 173 Views

Bitcoin is showing bearish signs below the $20,000 support zone against the US Dollar. BTC could accelerate further lower below the $19,500 support zone.

  • Bitcoin started a fresh decline and traded below the $20,000 support.
  • The price is now trading below $20,200 and the 100 hourly simple moving average.
  • There is a major bearish trend line forming with resistance near $20,050 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could start a substantial decline if it breaks the $19,500 support zone.
Bitcoin Price Remains At Risk

Bitcoin price attempted a recovery wave above the $20,300 resistance level. However, there was no upside break and the price remained in a bearish zone below $20,500.

Recently, Ethereum saw a major bearish reaction below the $1,500 support. As a result, BTC also moved a few points lower and declined below the $20,000 support. It even traded below the $19,600 and tested the $19,500 support zone.

A low is formed near $19,509 and the price is now consolidating losses. Bitcoin price is now trading below $20,200 and the 100 hourly simple moving average.

On the upside, an immediate resistance is near the $20,000 level. There is also a major bearish trend line forming with resistance near $20,050 on the hourly chart of the BTC/USD pair. Besides, the 23.6% Fib retracement level of the main decline from the $22,790 swing high to $19,509 low is just above the trend line.

The next major resistance sits near the $21,000 level and the 100 hourly simple moving average. It coincides with the 50% Fib retracement level of the main decline from the $22,790 swing high to $19,509 low.

Source: BTCUSD on TradingView.com

A close above the $21,000 resistance might start a fresh increase. In the stated case, the price may perhaps rise towards $21,400. Any more gains might send the price towards the $22,000 resistance zone.

More Losses in BTC?

If bitcoin fails to start a recovery wave above the $20,000 resistance zone, it could continue to move down. An immediate support on the downside is near the $19,500 zone.

The next major support is near the $19,200 levels. A clear move below the $19,500 and $19,200 levels might open the doors for a move towards the $18,500 level.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

Major Support Levels – $19,500, followed by $19,200.

Major Resistance Levels – $20,000, $20,050 and $20,300.


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