Bitcoin Slips into Negative Zone – Why Could $20,000 Drive Uptrend?
Bitcoin has begun a new drop against the US dollar below the $22,000 support level. BTC is falling and may continue below the $20,500
Bitcoin has begun a new drop against the US dollar below the $22,000 support level. BTC is falling and may continue below the $20,500 support level. The BITCOIN price currently trades below the $22,000 level and the 100 hourly simple moving average.
On the hourly chart of the BTC/USD pair, a big negative trend line is forming with resistance near $21,950. If there is a decisive move below $20,800, the pair may fall even more. The Bitcoin price is gaining bearish momentum. Bitcoin’s price began a new drop after failing to break through the $24,000 resistance level. Below the $23,500 and $23,000 marks, there was a persistent drop.
The bears gathered traction after breaking through the $22,500 support level and the 100 hourly simple moving average. Finally, the price fell below the $21,500 support level, dropping below $21,000. The price has created a low near $20,994, which is now consolidating losses.
On the plus side, the BTC price may encounter resistance near the $21,650 mark. It is close to the 50% Fib retracement level of the latest slide from the swing high of $22,250 to the low of $20,994.
The next significant resistance level is about $22,000. On the hourly chart of the BTC/USD pair, a big negative trend line is forming with resistance near $21,950. The trend line is close to the 76.4 percent Fib retracement level of the latest slide from the swing high of $22,250 to the low of $20,994.
Closing over the $22,000 resistance level may set the tone for further rises. In the aforementioned situation, the price may jump to $22,500. The next big barrier is located near the $23,000 mark.
More Bitcoin Losses?
If Bitcoin fails to initiate a recovery wave above the $21,650 barrier, it may continue to fall. On the downside, there is immediate support near the $21,000 level.
The next significant support is now at $20,500. In the short term, a clean break and closing below the $20,500 support zone might push the price towards $20,000. Good luck!
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