Bitcoin Drops 20%, Why The Bulls Must Protect $20K


Bitcoin prolonged its decline beneath the $25,000 assist in opposition to the US Greenback. BTC is down 20% and approaching the important thing $20,000 assist zone.

  • Bitcoin prolonged its decline beneath the $23,500 and $22,500 assist ranges.
  • The worth is now buying and selling beneath the $25,000 stage and the 100 hourly easy transferring common.
  • There’s a connecting bearish pattern line forming with resistance close to $22,100 on the hourly chart of the BTC/USD pair (knowledge feed from Kraken).
  • The pair should keep above the important thing $20,000 assist zone to keep away from extra downsides.

Bitcoin Worth Nosedives

Bitcoin value failed to begin a restoration wave and prolonged decline beneath the $25,000 support zone. The bears gained energy for a transfer beneath the $23,500 assist zone.

The worth declined over 20% and even traded beneath the $22,000 assist zone. A brand new multi-week low is fashioned close to $20,824 and the worth remains to be buying and selling in a robust downtrend. There was a detailed beneath the $22,000 stage and the 100 hourly simple moving average.

Bitcoin is now consolidating close to the $21,000 stage. An instantaneous resistance on the upside is close to the $21,800 stage. The primary main resistance is close to the $22,000 stage.

There’s additionally a connecting bearish pattern line forming with resistance close to $22,100 on the hourly chart of the BTC/USD pair. It’s close to the 23.6% Fib retracement stage of the latest drop from the $28,300 swing excessive to $20,824 low.

Bitcoin Price

Supply: BTCUSD on TradingView.com

If there’s a clear transfer above the pattern line, the pair may rise in direction of the $23,000 stage. The primary resistance is close to the $25,000 stage. It’s close to the 50% Fib retracement stage of the latest drop from the $28,300 swing excessive to $20,824 low.

Extra Losses in BTC?

If bitcoin fails to clear the $22,100 resistance zone and the pattern line, it may proceed to maneuver down. An instantaneous assist on the draw back is close to the $21,000 stage.

The following main assist is close to the $20,000 stage. A draw back break beneath the $20,000 assist may ship the worth additional decrease. Within the said case, the worth may drop in direction of the $18,500 assist zone within the close to time period.

Technical indicators:

Hourly MACD – The MACD is now gaining tempo within the bearish zone.

Hourly RSI (Relative Energy Index) – The RSI for BTC/USD is now within the oversold space.

Main Assist Ranges – $21,000, adopted by $20,000.

Main Resistance Ranges – $22,000, $22,100 and $23,000.



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