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Bitcoin Price Analysis: BTC Faces Uphill Task Near $21K

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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 major bearish trend line forming with resistance near $21,000 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).
  • The pair could continue to move down if it stays below the $22,000 pivot zone.

Bitcoin price is struggling below $22,000 against the US Dollar. BTC might extend losses if it stays below the $21,000 and $22,000 resistance levels.

Bitcoin Price Analysis

Bitcoin price started a major decline below the $23,000 support zone. There was a sharp bearish wave and the price even declined below the $21,000 support zone.

The bears pushed the price below the $19,500 level and the 55 simple moving average (4-hours). It even broke the $18,000 support. A low was formed near $17,568 and the price started an upside correction. There was a move above the $20,000 resistance zone.

The price cleared the 23.6% Fib retracement level of the main decline from the $31,550 swing high to $17,568 low. However, the bears were active near the $22,000 zone.

An immediate resistance on the upside is near the $21,000 level and the 55 simple moving average (4-hours). There is also a major bearish trend line forming with resistance near $21,000 on the 4-hours chart of the BTC/USD pair.

The first major resistance is near the $21,700 level. The next major resistance on the upside is near the $22,000 level, above which the price could rise towards the 50% Fib retracement level of the main decline from the $31,550 swing high to $17,568 low.

If there is no upside break, the price might start a fresh decline below $20,000. The next key support is near the $18,500 level. Any more losses might call for a move towards the $17,500 support zone.

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 continue to move down if it stays below the $22,000 pivot zone.

Technical Indicators

4 hours MACD – The MACD is now gaining momentum in the bearish zone.

4 hours RSI (Relative Strength Index) – The RSI is now below the 50 level.

Key Support Levels – $20,000 and $18,500.

Key Resistance Levels – $21,000, $22,000 and $23,000.

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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