Bitcoin Slips to $21,000 – Why Could $20,700 Be a Key Level Today

Bitcoin gained support against the US dollar near $20,750. BTC is retracing its gains but is coming up against resistance near $21,500 and the 100 hourly SMA. After a sharp drop, BITCOIN found support near $20,750.

The price currently trades below the $21,500 level and the 100 hourly simple moving average. On the hourly chart of the BTC/USD pair, there was a break over a key negative trend line with resistance near $21,270.

If there is a decisive move above the $22,000 resistance, the pair could recover higher.

Bitcoin Price Battles Support

Bitcoin’s price has begun to fall below the $22,000 support level. Before the bulls came, BTC fell below the $21,200 and $21,000 support levels. A low was set near $20,797, and the price began a short-term uptrend. A slight upward movement occurred above the $21,000 barrier. Furthermore, on the hourly chart of the BTC/USD pair, there was a break above a strong negative trend line with resistance near $21,270.

However, the Bitcoin price encountered significant resistance between $21,500 and the 100 hourly simple moving average. It is currently struggling to break through the $21,500 barrier level.

On the upside, the 100 SMA around $21,450 serves as immediate resistance. The first significant obstacle on the upside is located near the $21,650 level. It is around the 23.6% Fib retracement level of the significant slide from the swing high of $24,415 to the low of $20,797.

The primary barrier is forming near the $22,000 level. If the price continues to rise, it may reach the 50% Fib retracement level of the crucial slide from the $24,415 swing high to the $20,797 low. A closing above the $22,500 and $22,650 resistance levels could increase the price.

More Bitcoin Losses?

If Bitcoin fails to break through the $21,500 resistance zone and the 100 hourly SMA, it may continue to fall. On the downside, there is immediate support near the $21,000 level.

The next big support is now at $20,800. A break and closing below the $20,800 barrier might trigger another severe plunge. The price may fall near the $20,000 mark in the mentioned instance. Good luck!