Bitcoin has started a fresh decline below the $20,000 support zone against the US dollar. BTC has traded below $19,000 and remains at risk of moving towards $18,000.
- Bitcoin started a fresh downtrend and traded below the $19,500 support.
- The price is now trading below $19,200 and below the 100 hourly simple moving average.
- On the hourly chart of the BTC/USD pair (data feed from Kraken) there was a break below the bullish trend line connection at $19,850 support.
- The pair is now at risk of going to the $18,000 support zone in the near term.
Bitcoin price starts a new decline
Bitcoin price failed to break the $20,500 resistance level. BTC started a fresh downtrend and traded below the $20,000 and $19,500 support levels.
Additionally, there was a break below the conjunctive bullish trend line at $19,850 support on the hourly chart of the BTC/USD pair. The pair accelerated below the $19,200 level and below the 100 hourly simple moving average. In fact, it dropped below $19,000 and went as low as $18,706.
Bitcoin price is now consolidating losses below $19,200 and the 100 hourly moving average. On the downside, immediate resistance is near the $19,050 level. It is close to the 23.6% Fib retracement level from the swing high of $20,197 to the low of $18,706.
The next major resistance sits near the $19,350 level. It coincides with the 50% Fib retracement level from the recent swing high of $20,197 to the low of $18,706.
Source: BTCUSD on TradingView.com
The main hurdle is now forming near the $20,000 zone and the 100 hourly simple moving average. A close above the $20,000 resistance could initiate a new rally. In this case, the price will probably increase to 21,200 dollars.
More losses in BTC?
If Bitcoin fails to start a recovery wave above the $19,050 resistance zone, it may continue to move lower. Immediate support is near the $18,700 zone.
The next major support is near the $18,550 level. A clear move below the $18,700 and $18,550 levels could open the door to a move towards the $18,000 level.
Technical indicators:
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.
Major support levels – $18,700, then $18,550.
Major resistance levels – $19,050, $19,300 and $19,500.