Bitcoin price analysis: possibility of return to 20 thousand dollars

Bitcoin has started a new downward movement from the $23,000 resistance in the past hours, and if the downward trend continues, we should expect a sharp price drop below the $21,800 level.

To Report News BTC, Bitcoin has been trying to break through the $24,000 resistance for the past few days. However, as the price approached the $23,800 level, sellers became more active and Bitcoin failed to move above $23,744.

Further, the price fell below the support of $22,500 and the 100-hour simple moving average (SMA 100), after which buyers started a new upward correction to the $22,200 resistance with the support of Bitcoin at $21,950. they did This upward correction was accompanied by the price crossing the Fibonacci correction level of 23.6%. It should be mentioned that in this analysis, Fibonacci levels are set based on the downward movement of the price from $22,744 to the bottom of $21,950.

Further, the price faced pressure from sellers near the $23,000 resistance and the 100-hour simple moving average, and as a result, buyers were prevented from reaching the 50% Fibonacci retracement level.

Bitcoin is currently trading below $22,000 and has just lost support from the uptrend line on the hourly market view. The price is now a short distance from the $21,800 support, and assuming the market continues to rise, the closest resistance will be the $22,000 level.

Bitcoin’s next key resistance is the $22,500 level. The crossing and closing of the price candle above this level can lead to the continuation of the upward trend of Bitcoin. In this case, the next target of Bitcoin will be the $23,000 and $24,000 resistances.

Conversely, if Bitcoin fails to maintain its position above the $21,800 support, the downtrend will continue. In this case, the closest support in front of Bitcoin will be the $21,600 level.

The next key support is $21,500, and if this level is also lost, we should probably expect Bitcoin to fall to $20,500 and even $20,000.

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, $21,600 and $21,500 are key supports for Bitcoin, and $22,200, $22,500, and $23,000 act as resistances.