Bitcoin price is facing a big hurdle near the $21,500 zone. BTC could correct lower if there is a clear move below the $20,500 support zone.
Bitcoin seems to be facing a big challenge near the $21,450 and $21,500 levels. The price is trading above $20,600 and the 100 hourly simple moving average. There was a break below a major uptrend line with support near $21,100 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair could start a correction to the downside below the $20,800 and $20,500 support levels.
Bitcoin price continues to struggle
Bitcoin price attempted a bullish breakout above the $21,500 resistance zone. However, BTC failed to gain pace above the $21,500 zone. A high was formed near $21,679 and the price is now slowly moving lower.
There was a break below the $21,250 level. The price dipped below the 23.6% Fibonacci retracement level of the recent rise from the $20,620 low to $21,679 high. There was a break below a major uptrend line with support near $21,100 on the hourly chart of the BTC/USD pair.
Bitcoin price is now trading above $20,600 and the 100 hourly simple moving average. If there is another breakout attempt to the upside, immediate resistance is near the $21,450 level. The next major resistance is near the $21,500 zone, above which the price could gain bullish momentum.
Source: BTCUSD on TradingView.com
In the indicated case, the price perhaps goes towards the $21,800 level. More gains could send the price of btc looking towards the $22,000 level.
Downward correction in BTC?
If bitcoin price fails to break above the $21,500 resistance, it could continue lower. An immediate support on the downside is near the $21,100 zone.
The next major support is near the $20,900 zone and the 100 hourly SMA. It is near the 61.8% Fibonacci retracement level of the recent rise from the $20,620 low to $21,679 high. Major support is now forming near the $20,500 level, below which price could accelerate down towards $20,000. More losses could send the price to $19,500.
Technical indicators:
Hourly MACD – The MACD is now losing pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now near the 50 level.
Main support levels: $20,900, followed by $20,500.
Major Resistance Levels: $21,450, $21,500, and $22,000.
This post Bitcoin price faces a key challenge and risks a downward correction
was published first on https://newsbtc.com/analysis/btc/bitcoin-price-challenge-21-5k/
