TA: Bitcoin Remains In Downtrend, Risk of Drop Below $20K

Bitcoin failed to recover above $23,000 against the US Dollar. BTC started a fresh decline and remains at a risk of a move below the $20,000 support.

Bitcoin failed to climb above $23,000 and started a fresh 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 a risk of a move below the $20,000 support zone in the near term.

Bitcoin Price Revisits $20K

Bitcoin price attempted a fresh increase 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 fresh 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 declined below the $21,000 level and traded close to the $20,000 support zone. A low was formed near $20,200 and the price is now attempting an upside correction.

There was a move above the $20,500 resistance level. Bitcoin is now testing the 23.6% Fib retracement level of the recent decline 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% Fib retracement level of the recent decline from the $22,950 high to $20,200 low is also near the $21,550 level. Any more gains might 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.

Fresh Decline in BTC?

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

The next major support is near the $20,000 level. A downside break below the $20,000 support could spark a sharp decline. In the stated 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.

Related Posts

Binance hires audit firm that served Donald Trump to verify crypto reserves

Mazars’ U.S. division was the longtime accounting firm for former United States President Donald Trump’s company. Cryptocurrency exchange Binance is working with accounting firm Mazars as part…

Bitcoin sees worst monthly close in 2 years as traders watch $16.7K

BTC price action strengthens into the November monthly candle close, but traders are already warning over getting too “cocky” on Bitcoin. Bitcoin (BTC) attempted to flip $17,000…

Demand for liquid Ethereum staking options continues to grow post-Merge

Demand for liquid Ethereum staking options gains pace in the months following the Merge, according to blockchain data. Blockchain data analytics carried out by Nansen highlights the…

How to launch an NFT marketplace? Scale up your NFT Business in 2023 with these trends

Non-Fungible Tokens, the talk of the town, had made it again! The revolutionizing asset that turned the tables of the traditional market just set a new goal…

Bitget Takes on World Cup 2022 with Messi to Inject Confidence in Social Trading

The leading exchange expands the team globally as Messi leads Argentina to the round of 16. World Cup 2022 in Qatar is one of the most expensive…

Bitdao Reveals Modular Ethereum L2 Called Mantle, Public Testnet to Launch in 2023

On Wednesday, one of the world’s largest decentralized autonomous organizations, Bitdao, announced the soft launch of a modular Ethereum layer two (L2) network called Mantle that claims…

Generated by Feedzy