Bitcoin slumped below the $21,000 zone. Below the $20,650 support zone, BTC could gain bearish momentum, according to technical analysis by NewsBTC’s Aayush Jindal.
Bitcoin at Risk Again
Bitcoin failed to break past the $21,500 resistance zone and started a fresh decline. There was a clear move below the 50% Fib retracement level of the upward move from the $19,751 high to $21,780 high. There was also a close below the $20,800 level and the 100 hourly simple moving average.
Bitcoin tested the $20,600 and $20,500 support levels. It is now consolidating near the 61.8% Fib retracement level of the upward move from the $19,751 high to $21,780 high. An immediate resistance is near the $20,920 level.
The next key resistance is near the $21,000 level. There is also a key bearish trend line forming with resistance near $21,000 on the hourly chart of the BTC/USD pair. A clear move above the $21,000 level could start a decent uptrend. In the indicated case, the price could climb above the $21,250 level. The next major hurdle could be near the $21,780 level, above which the price could rise towards the $22,500 level.
Will Bitcoin Drop More?
Jindal says that if Bitcoin fails to break past the $21,250 resistance zone, it may continue to move lower. An immediate support is near the $20,650 area and $20,500. A downside break below the $20,650 support zone could start a major decline. In this case, the price could slide towards the $20,000 level. Any further losses could set the pace for a move towards the $19,200 level or even $18,800.
What Are Technical Indicators Saying?
- Hourly MACD – The MACD is now gaining momentum in the bearish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently below the 50 level.
- Major Support Levels – $20,000 then $20,000
- Major Resistance Levels – $20.920, $21,250 and $22,500
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