Bitcoin price is still struggling to clear the $21,500 resistance zone. BTC could correct lower if there is a clear move below the $20,500 support zone.
- Bitcoin struggled to clear the $21,500 resistance zone and corrected lower.
- The price is trading below $21,000 and the hourly moving average is 100.
- There is a break below the key bullish trend line with support near $21,150 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could continue to decline below the $20,650 and $20,500 support levels.
Bitcoin Price Begins Downside Correction
Bitcoin price failed to clear a major hurdle near the $21,500 resistance zone. BTC started its downward correction from the swing high of $21,639. It is trading below the $21,500 and $21,250 levels.
There is a break below a key bullish trend line with support near $21,150 on the hourly chart of the BTC/USD pair. The price even broke the $20,800 support zone. A low was formed near $20,395 and the price is currently showing some bearish signs.
The price of Bitcoin is currently trading below $21,000 and the hourly simple moving average is 100. It is consolidating above the 23.6% Fib retracement level of the recent decline from $21,639 swing high to $20,395 low.
Immediate resistance is near the $20,850 level. The next major resistance is near the $21,080 zone. It is close to the 50% Fib retracement level of the recent decline from $21,639 swing high to $20,395 low, above which the price can gain bullish momentum.
Source: BTCUSD on TradingView.com
In that case, the price may rise to the $21,500 level. Another gain could send the btc price to the $22,000 level.
More Losses in BTC?
If the price of bitcoin fails to clear the $21,080 resistance, it could continue to decline. The immediate support at the bottom is near the $20,600 zone.
The next major support is near the $20,500 zone, below which the price may accelerate down to $20,000. Any further loss can send the price to $19,500, where the bull can take a stand.
Technical indicators:
Hourly MACD – MACD is currently losing in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently below the 50 level.
Main Support Level – $20,500, followed by $20,000.
Key Resistance Levels – $21,080, $21,250 and $21,500.