Home CryptocurrencyAnalysis Bitcoin price could peak in the short term, why dips can be attractive

Bitcoin price could peak in the short term, why dips can be attractive

by SuperiorInvest

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.

Source Link

Related Posts

%d bloggers like this: