Bitcoin price is still trying to clear the $21,500 resistance zone. BTC could further correct lower if there is a clear move below the $20,500 support zone.
- Bitcoin tried to clear the $21,500 resistance zone and corrected lower.
- The price is trading below $21,000 and 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 key bullish trendline with support near $21,150.
- The pair could continue to move down below the $20,650 and $20,500 support levels.
Bitcoin Price Begins Downward Correction
Bitcoin price failed to clear a key hurdle near the $21,500 resistance zone. BTC started a repair down from $21,639. It traded below the $21,500 and $21,250 levels.
On the hourly chart, the BTC/USD pair has broken below a key bullish trendline with support near $21,150. The price even broke the $20,800 support zone. A low is forming near $20,395 and the price is now showing several bearish signs.
Bitcoin price is now trading below $21,000 and 100 hour simple moving average. It is consolidating above the 23.6% Fib retracement level of the recent decline from the $21,639 swing high to the $20,395 low.
Immediate resistance is near the $20,850 level. Another major resistance is near the $21,080 zone. It is near the 50% Fib retracement level of the recent decline from the $21,639 swing high to the $20,395 low, above which the price could gain bullish momentum.
Source: BTCUSD on TradingView.com
In that case, the price can probably rise to the level of $21,500. Any further gains could send the BTC price towards the $22,000 level.
More losses in BTC?
If the Bitcoin price fails to clear the $21,080 resistance, it may continue to decline. Immediate downside support is near the $20,600 zone.
Another major support is located near the $20,500 zone, below which the price could accelerate towards $20,000. Any more losses could send the price to $19,500 where the bulls could possibly take a stand.
Technical indicators:
Hourly MACD – MACD is now losing momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – RSI for BTC/USD is now below the 50 level.
Major support levels – $20,500, followed by $20,000.
Major resistance levels – $21,080, $21,250 and $21,500.
