Bitcoin is showing bearish signs below the $20,000 support zone against the US dollar. BTC could accelerate below the $19,500 support zone.
- Bitcoin has started a fresh downtrend and traded below the $20,000 support.
- The price is now trading below $20,200 and below the 100 hourly simple moving average.
- There is a large bearish trend line with resistance near $20,050 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- If the pair breaks the $19,500 support zone, it could initiate a sharp decline.
The price of Bitcoin remains at risk
Bitcoin price tested a recovery wave above the $20,300 resistance level. However, there was no reversal 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 dropped a few points and declined below the $20,000 support. In fact, it traded below $19,600 and tested the $19,500 support zone.
A low was formed around $19,509 and the price is now consolidating losses. Bitcoin price has now traded below $20,200 and above the 100 hourly simple moving average.
On the downside, immediate resistance is near the $20,000 level. There is a major bearish trendline with resistance near $20,050 on the hourly chart of the BTC/USD pair. Additionally, the 23.6% Fib retracement level from the swing high of $22,790 to the swing low of $19,509 is above the trend line.
The next major resistance sits near the $21,000 level and the 100 hourly simple moving average. It corresponds to the 50% Fib retracement level of the main decline from the swing high of $22,790 to the low of $19,509.
Source: BTCUSD on TradingView.com
A close above the $21,000 resistance could initiate a new rally. In this case, the price will probably increase to 21,400 dollars. Any further gains could 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 may continue to move lower. Immediate support 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 could open the door for a move towards the $18,500 level.
Hourly MACD – MACD is now accelerating in the hidden zone.
Hourly RSI (Relative Strength Index) – The BTC/USD RSI is now below the 50 level.
Main support levels – $19,500, then $19,200.
Major resistance levels – $20,000, $20,050 and $20,300.