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TA: Bitcoin Price Dives Below $20K, Why BTC Is Vulnerable To More Losses

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Cryptocoins News / NewsBTC 120 Views

Bitcoin started a major decline and traded below $20,000 against the US Dollar. BTC remains at a risk of more losses unless it recovers above $20,000.

  • Bitcoin started another decline below the $20,200 and $20,000 levels.
  • The price is now trading below the $20,000 level and the 100 hourly simple moving average.
  • There is a key bearish trend line forming with resistance near $20,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could accelerate further lower below the $19,500 support zone in the coming sessions.
Bitcoin Price Takes Hit

Bitcoin price failed to recover above the $22,000 resistance zone. BTC started a fresh decline below the $21,200 and $21,000 support levels.

The bears gained strength for a push below the $20,000 support zone. The price settled below the $20,000 level and the 100 hourly simple moving average. A low is formed near $19,525 and the price is now consolidating losses.

On the upside, an immediate resistance is near the $19,800 level. The first major resistance sits near the $20,000 level. It is near the 23.6% Fib retracement level of the downward move from the $21,875 swing high to $19,525 low.

Besides, there is a key bearish trend line forming with resistance near $20,000 on the hourly chart of the BTC/USD pair. Bitcoin price must clear the $20,000 resistance zone to start a recovery wave.

Source: BTCUSD on TradingView.com

The next major resistance could be near the $20,700 zone. It is close to the 50% Fib retracement level of the downward move from the $21,875 swing high to $19,525 low. Any more gains might send the price towards the $21,000 resistance zone.

More Losses in BTC?

If bitcoin fails to clear the $20,000 resistance zone, it could continue to move down. An immediate support on the downside is near the $19,500 level and the recent low.

The next major support sits near the $19,200 level. A close below the $19,200 support might spark a sharp decline. In the stated case, the price might decline towards the $18,500 level in the coming sessions.

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 – $19,800, $20,000 and $21,000.


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