HomeBitcoin NewsBitcoin Price Analysis: BTC Eyes Upside Break

Bitcoin Price Analysis: BTC Eyes Upside Break

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  • Bitcoin price started a fresh decline below the $22,000 zone against the US Dollar.
  • The price is now trading below $21,000 and the 55 simple moving average (4-hours).
  • There is a key bearish trend line forming with resistance near $20,400 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).
  • The pair could start a decent increase if there is a clear move above the $20,500 zone.

Bitcoin price is struggling below $21,000 against the US Dollar. BTC might extend losses if it stays below the $20,500 and $21,000 resistance levels.

Bitcoin Price Analysis

Bitcoin price started a fresh decline from the $22,000 resistance zone. There was a steady decline below the $21,500 and $21,000 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. A low was formed near $19,513 and the price is now consolidating losses.

It is now trading below $21,000 and the 55 simple moving average (4-hours). There was a move above the 23.6% Fib retracement level of the downward move from the $21,925 swing high to $19,513 low.

An immediate resistance on the upside is near the $20,400 level. There is also a key bearish trend line forming with resistance near $20,400 on the 4-hours chart of the BTC/USD pair. The first major resistance is near the $20,720 level and the 55 simple moving average (4-hours).

The 50% Fib retracement level of the downward move from the $21,925 swing high to $19,513 low is also near $20,720. The next major resistance on the upside is near the $21,000 level. Any more gains might send the price towards the $22,000 zone.

If there is no upside break, the price might continue to decline below $20,000. The next key support is near the $19,500 level, below which the price might accelerate lower. In the stated case, the price could decline towards the $18,800 level.

Bitcoin Price
Bitcoin Price

Looking at the chart, bitcoin price is clearly trading below $21,000 and the 55 simple moving average (4-hours). Overall, the price could start a decent increase if there is a clear move above the $20,500 zone.

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 above the 50 level.

Key Support Levels – $20,000 and $19,500.

Key Resistance Levels – $20,400, $20,720 and $21,000.

Aayush Jindal
Aayush Jindal
Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession, loves blogging and observing financial markets.

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