Bitcoin was unable to recover above $23,000 against the US Dollar. BTC started a new decline and remains at risk of moving below the $20,000 support.

Bitcoin failed to break above $23,000 and started a new decline. The price is now trading below the $22,000 level and the 100 hourly simple moving average. There is a new connecting bearish trend line forming with resistance near $20,850 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair remains at risk of moving below the $20,000 support zone in the near term.

Bitcoin price returns to $20K

Bitcoin price attempted a further rise above the $22,000 level. However, the bears were active near the $22,800 and $23,000 levels. A high was formed near $22,950 and the price started a new decline.

There was a clear move below the $21,500 level and the price settled below the 100 hourly simple moving average. The price even dipped below the $21,000 level and traded near the $20,000 support zone. A low was formed near $20,200 and the price is now attempting an upward correction.

There was a move above the $20,500 resistance level. Bitcoin is now testing the 23.6% Fibonacci retracement level of the recent drop from the $22,950 high to $20,200 low.

There is also a new connecting bearish trend line forming with resistance near $20,850 on the hourly chart of the BTC/USD pair. An immediate resistance on the upside is near the $21,000 level. The first major resistance is near the $21,550 level.

Source: BTCUSD on TradingView.com

The 50% Fibonacci retracement level of the recent decline from the $22,950 high to $20,200 low is also close to the $21,550 level. Further gains could send the price towards the $22,300 level or the 100 hourly simple moving average. The main resistance is still near the $23,000 level.

New drop in BTC?

If Bitcoin fails to clear the $22,000 resistance zone and the trend line, it could start a new decline. An immediate support on the downside is near the $20,200 level.

The next big support is near the $20,000 level. A downside break below the $20,000 support could trigger a sharp drop. In the indicated case, the price could test $18,800.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

Major support levels: $20,200, followed by $20,000.

Major resistance levels: $21,550, $22,300 and $23,000.



This post Bitcoin Remains in Downtrend, Risk of Drop Below $20K

was published first on https://www.newsbtc.com/analysis/btc/bitcoin-remains-in-downtrend-20k/

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