Bitcoin Consolidates in a Narrow Range – Brace to Trade a Breakout
Bitcoin fell below the $21,000 resistance level against the US dollar. BTC displays bearish characteristics and remains vulnerable to a significant drop below $20,000. The price of Bitcoin failed to rise and remained below the $21,000 barrier level.
The BITCOIN price currently trades below $20,750 and the 100 hourly simple moving average (SMA). On the hourly timeframe of the BTC/USD pair, a key negative trend line is forming with resistance near $20,250. The pair is stabilizing above $20,000 and may begin another drop.
Bitcoin Under Bearish Pressure
Bitcoin’s price remained gloomy, trading below $21,000. A short-term recovery wave occurred, although bears were active at the $20,300 and $20,350 levels. The price began a new drop and traded underneath the $20,000 mark. It shattered the previous swing low and hit a new weekly low of $19,619. The price currently trades below $20,750 and the 100 hourly simple moving average.
On the hourly timeframe of the BTC/USD pair, a key negative trend line is forming with resistance near $20,250. On the upswing, an immediate resistance level is near $20,300. It is close to the 23.6% Fib retracement level of the crucial drop from the swing high of $22,790 to the low of $19,619.
A clear break over the trend line and $20,300 might push the price up to the $20,750 barrier. The next significant resistance is located near the $21,200 level. It corresponds to the substantial slide’s 50% Fib retracement level from the $22,790 swing high to the $19,619 low.
A close above the $21,200 resistance level could spark a new upward trend. In this situation, the price may jump to $22,000 or higher. Any further advances might push the price to the $22,450 barrier level.
What if Bitcoin Breaks Below the Support Zone?
If Bitcoin fails to break through the $20,300 barrier level, it may continue to fall. On the downside, there is immediate support near the $20,000 level.
The next significant support is at $19,600 and $19,500. If the price falls below $19,500, it may move towards the $18,500 support. Good luck!
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