TA: Bitcoin Price At Clear Risk of Sharp Drop, Indicators Turn Red

TA: Bitcoin Price At Clear Risk of Sharp Drop, Indicators Turn Red

Bitcoin started a fresh decline from the $23,000 resistance against the US Dollar. BTC is declining and remains at a risk of a sharp decline below $21,800.

  • Bitcoin started a downside correction and traded below the $22,200 level.
  • The price is now trading below the $22,500 level and the 100 hourly simple moving average.
  • There was a break below a key bullish trend line with support near $22,700 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair might decline heavily if there is a clear move below the $21,450 level.

Bitcoin Price Starts Fresh Decline

Bitcoin price attempted a clear move above the $24,000 resistance zone. However, the bears appeared near $23,800 zone. The last swing high was formed near $23,744 before there was a fresh decline.

The price declined below the $22,500 support level and the 100 hourly simple moving average. However, the bulls were active near the $21,950 zone. Recently, there was an upside correction above the $22,200 resistance zone. The price climbed above the 23.6% Fib retracement level of the downward move from the $22,744 swing high to $21,950 low.

However, the price faced sellers near the $23,000 zone and the 100 hourly simple moving average. The price failed near the 50% Fib retracement level of the downward move from the $22,744 swing high to $21,950 low.

It is now moving lower below $22,000. There was a break below a key bullish trend line with support near $22,700 on the hourly chart of the BTC/USD pair. It is now approaching a key support near $21,800 level. On the upside, bitcoin price could face resistance near the $22,200 level.

Source: BTCUSD on TradingView.com

The next key resistance is near the $22,500 zone. A close above the $22,500 resistance zone could set the pace for more gains. In the stated case, the price may perhaps rise towards the $23,000 level. The next major resistance sits near the $24,000 level.

Downside Break in BTC?

If bitcoin fails to stay above the $21,800 support, it could continue to move down. An immediate support on the downside is near the $21,600 level.

The next major support now sits near the $21,500 level. A clear break and close below the $21,500 support zone might send the price towards $20,500 in the near term or even $20,000.

Technical indicators:

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

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

Major Support Levels – $21,600, followed by $21,500.

Major Resistance Levels – $22,200, $22,500 and $23,000.

Did you like this?
Tip Bitcoin Tradeboard with Cryptocurrency

Donate Bitcoin to Bitcoin Tradeboard

Scan to Donate Bitcoin to Bitcoin Tradeboard
Scan the QR code or copy the address below into your wallet to send some bitcoin:

Donate Bitcoin Cash to Bitcoin Tradeboard

Scan to Donate Bitcoin Cash to Bitcoin Tradeboard
Scan the QR code or copy the address below into your wallet to send bitcoin:

Donate Ethereum to Bitcoin Tradeboard

Scan to Donate Ethereum to Bitcoin Tradeboard
Scan the QR code or copy the address below into your wallet to send some Ether:

Donate Litecoin to Bitcoin Tradeboard

Scan to Donate Litecoin to Bitcoin Tradeboard
Scan the QR code or copy the address below into your wallet to send some Litecoin:

Donate Monero to Bitcoin Tradeboard

Scan to Donate Monero to Bitcoin Tradeboard
Scan the QR code or copy the address below into your wallet to send some Monero:

Donate ZCash to Bitcoin Tradeboard

Scan to Donate ZCash to Bitcoin Tradeboard
Scan the QR code or copy the address below into your wallet to send some ZCash: