Bitcoin plummets, but it’s too early to say bulls have given up

Bitcoin fell below the $20,000 area against the US dollar. BTC remains at risk of more losses if the bulls fail to protect the $19,800 support area.

  • Bitcoin is showing bearish signs below $21,000 and $20,500.
  • The price is now trading below $20,400 and the 100 hourly simple moving average.
  • A key bearish trend line has formed with resistance near $20,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • If there is a clear break below the $19,800 area, the pair is likely to decline further.

Bitcoin Price Still at Risk

bitcoin price failed to restore Above the $21,000 pivot level. The price remains in the bearish zone and extended the decline below the $20,500 support area.

It also closed below $20,250. BTC surged below $20,000 but bulls are active near $19,800. A low was formed near $19,828 and the price is now consolidating losses.It is now trading below $20,400, while 100 hour simple moving average.

Immediate resistance on the upside is near $20,150. It is near the 23.6% Fib retracement level of the recent decline from the $21,188 swing high to $19,828 low.

The next key resistance is near $20,400. There is also a key bearish trend line forming with resistance near $20,400 on the hourly chart of the BTC/USD pair. The trend line is near the 50% Fib retracement level of the recent decline from the $21,188 swing high to $19,828 low.

Source: BTCUSD on TradingView.com

Significantly above trendline resistance and then $20,500 could start a recovery wave. In the aforementioned case, the price could rise towards the $20,900 level. The next major hurdle for the bulls could be near the $21,200 area, above which the price could rise towards the $21,800 level.

BTC to lose more?

If Bitcoin fails to break the $20,500 resistance zone, it could continue to decline. Immediate support on the downside is near $20,000.

The main support is now near $19,800, below which the price could accelerate lower. The next major support is near $18,800. Any more losses could push the price towards the $18,000 level.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

Major support levels – $20,000, followed by $19,800.

Major resistance levels – $20,150, $20,400 and $20,500.

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