Short-term analysis of Bitcoin price: the possibility of a price drop of up to $20,000
Bitcoin recently found new support near $20,750. If the buyers continue to fail to maintain this support zone, the possibility of the price falling to $20,000 will increase.
To Report News BTC, the downward momentum of the Bitcoin price increased after breaking the support of $22,000 and continued to lose the support of $21,200 and then $21,000.
Bitcoin’s recent bottom was formed near $20,797 and then, as seen on the chart, the price started a mild upward correction and returned above $21,000. Simultaneously with this jump, the resistance of the downward trend line on the chart has also been broken at $21,270.
Another resistance has formed near $21,500 and the 100 hourly simple moving average (MA 100 – red line in the image), which the price has crossed again to the downside. If the market continues to trend upward, the first major resistance will be the 100-hour simple moving average price at $21,450. The next key resistance is the 23.6% Fibonacci retracement level at $21,650. In this analysis, Fibonacci levels are set based on the downward movement of the price from $24,415 to the bottom of $20,797.
The $22,000 level is another key resistance for buyers, and a continuation of the upward trend could push the price of Bitcoin up to the 50% Fibonacci retracement level at $22,605. Closing the price candle above the $22,500 to $22,605 resistance area can also push Bitcoin to higher levels.
Conversely, if Bitcoin fails to break through $21,500 and the 100-hour simple moving average, the closest support would be the $21,000 price level. The next key support is at $20,800. If the candle continues to close below this level, it will open the way for the continuation of the downtrend to the psychological support of $20,000.
The MACD is leaving the bearish range and the Relative Strength Index (RSI) is above the middle axis at the level of 50.
As mentioned, $21,000 and $20,800 are key supports for Bitcoin, and $21,500, $22,000, and $22,605 act as resistances.
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