Bitcoin Price Analysis: BTC Faces Key Resistance, Upsides Limited
Bitcoin price is struggling below $20,000 against the US Dollar. BTC might extend losses if it stays below the $19,600 and $20,000 resistance levels.
Bitcoin Price Analysis
Bitcoin price started a fresh decline below the $21,500 support zone. There was a steady decline below the $21,500 and $21,200 support levels.
The decline gained pace below the $20,500 level and the 55 simple moving average (4-hours). The bears even pushed the price below the $20,000 level. The price tested the $18,250 support zone and is now correcting losses. There was a minor move above the $19,000 level.
The price climbed above the 23.6% Fib retracement level of the downward move from the $22,800 swing high to $18,255 low. However, upsides were limited above the $19,500 level.
An immediate resistance on the upside is near the $19,300 level. The first major resistance is near the $19,600 level. There is also a key bearish trend line forming with resistance near $19,600 on the 4-hours chart of the BTC/USD pair.
A clear move above the trend line might send the price towards $20,000 and the 55 simple moving average (4-hours). Any more gains might push the price towards the $20,550 zone. It is near the 50% Fib retracement level of the downward move from the $22,800 swing high to $18,255 low.
If there is no upside break, the price might continue to decline below $19,000. The next key support is near the $18,500 level, below which the price might accelerate lower. In the stated case, the price could decline towards the $17,500 level.
Bitcoin Price
Looking at the chart, bitcoin price is clearly trading below $20,000 and the 55 simple moving average (4-hours). Overall, the price remains at a risk of more losses below the $18,500 level in the near term.
Technical Indicators
4 hours MACD – The MACD is now losing momentum in the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI is now below the 50 level.
Key Support Levels – $19,000 and $18,500.
Key Resistance Levels – $19,600, $20,000 and $20,500.
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