Bitcoin Price Analysis: Likely to crash to a new monthly low
Bitcoin has been trading below $21,000 since two days ago. The bearish trend may continue unless buyers can push above the $20,750 resistance.
To Report News BTC, Bitcoin entered a downtrend after falling below $21,000. Buyers first tried to push the price back to higher levels; But this action of theirs was accompanied by sellers’ reaction and falling below the support of $20,800.
This move was followed by the price falling below the 61.8% Fibonacci retracement level. In this analysis, Fibonacci levels are set based on the upward movement of the price from $19,750 to the peak of $21,780. In addition, this fall happened at the same time as the price fell below the $20,550 and $20,500 supports. Finally, the price dropped to the level of 76.4% Fibonacci retracement.
Bitcoin is currently trading below the 100 hourly simple moving average (SMA 100 – red line in the image) and resistance at $20,500. If the market goes up, the nearest resistance for buyers will be the $20,520 level and the next key resistance is at $20,750. In addition, in the 1-hour view of the Bitcoin market, a resistance downward trend line has formed at the level of $20,820.
A break through the resistance of the downtrend line on the chart and the $21,000 level could spark a new uptrend. In such a situation, the chance of Bitcoin to jump up to $21,250 will increase. The next hurdle for buyers could be near $21,750, and crossing it would open the way for the price to rise to $22,500.
Conversely, if buyers fail to break through the $21,000 resistance, the downtrend may continue. In this case, the closest support ahead of the price is at $20,220.
A break of the $20,220 support could take Bitcoin even lower, after which the next key support would be near $20,000. Besides, the loss of the support of this level may also lead to the price falling to $18,800; The level that will be the new monthly price floor of Bitcoin.
The MACD is accelerating in the bearish range and the Relative Strength Index (RSI) is below the middle axis at the 50 level.
As mentioned, $20,220 and $20,000 are key supports for Bitcoin, and $20,520, $20,800, and $21,250 act as resistances.