Bitcoin started a fresh decline below the $22,000 support against the US Dollar. BTC is falling and may extend losses below the $20,500 support zone.
- Bitcoin started a fresh decline and traded below the $22,000 level.
- The price is now trading below the $22,000 level and the 100 hourly simple moving average.
- A major bearish trend line is forming with resistance near $21,950 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could drop further if there is a clear move below the $20,800 level.
Bitcoin price is gaining bearish momentum
Bitcoin price started a further decline after failing to break through the $24,000 resistance zone. There was a steady decline below the $23,500 and $23,000 levels.
The bears gained strength for a break below the $22,500 support level and the 100 hour simple moving average. Finally, the price traded below the $21,500 support level and even climbed below $21,000. A bottom forms near $20,994 and the price is now consolidating losses.
On the upside, bitcoin price may face resistance near the $21,650 level. It is near the 50% Fib retracement level of the recent swing decline from the $22,250 swing low to $20,994 low.
The next key resistance is near the $22,000 area. A major bearish trend line is also forming with resistance near $21,950 on the hourly chart of the BTC/USD pair. The trendline is near the 76.4% Fib retracement level of the recent decline from the $22,250 high to $20,994 low.
Source: BTCUSD on TradingView.com
A close above the $22,000 resistance zone could set the tone for more gains. In the indicated case, the price could possibly rise towards the $22,500 level. The next major resistance is seen near the $23,000 level.
More losses in BTC?
If bitcoin fails to start a wave of recovery above the $21,650 level, it could continue falling. An immediate support on the downside is near the $21,000 level.
The next major support now lies near the $20,500 level. A clear break and close below the $20,500 support zone could send the price towards $20,000 in the near term.
Hourly MACD – The MACD is now accelerating into the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is well below the 50 level.
Main support levels – $21,000, followed by $20,500.
Main resistance levels – $21,650, $22,000 and $22,500.