Bitcoin started a new bearish wave. According to technical analysis by NewsBTC’s Aayush Jindal, BTC could continue to decline unless there is a clear move above the $20,750 resistance zone.
Bitcoin Drops Again
Bitcoin failed to sustain above the $21,000 level and traded below the 61.8% Fib retracement level of the key recovery from the $19,750 high to $21,780 high. Bitcoin tested the 76.4% Fib retracement level of the key recovery from the $19,750 high to $21,780 high. Bitcoin is currently trading below the $20,500 level and the 100 hourly simple moving average.
An immediate resistance is near the $20,520 level. The next key resistance is near the $20,750 area. There is also a major bearish trend line forming with resistance near $20,820, on the hourly chart of the BTC/USD pair.
A clear move above the trendline resistance followed by $21,000 could start a decent rise. In the stated case, it could rise above the $21,250 level. The next major hurdle for the bulls could be near the $21,750 area, above which the price could rally to the $22,500 level.
Will Bitcoin Drop More?
Jindal says that if Bitcoin fails to break through the $21,000 resistance zone, it may continue to move lower. The next major support is near the $20,000 zone. Any more losses could send the price to the $18,800 level or a monthly low.
What Are Technical Indicators Saying?
- Hourly MACD – The MACD is now gaining momentum in the bearish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently below the 50 level.
- Major Support Levels – $20,220 followed by $20,000
- Major Resistance Levels – $20,520, $20,800, and $21,250
