Bitcoin Price Analysis: BTC At Risk of Drop To $20K

• Bitcoin price started a fresh decline below the $22,500 zone against the US Dollar.
• The price is now trading below $22,000 and the 55 simple moving average (4-hours).
• There was a break below a major rising channel with support near $23,750 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).
• The pair could continue to decline further it there is no recovery above the $21,750 resistance.

Bitcoin price is struggling below $22,000 against the US Dollar. BTC might extend losses if it stays below the $21,750 and $22,500 resistance levels.

Bitcoin Price Analysis

Bitcoin price started a fresh decline from the $25,000 resistance zone. There was a steady decline below the $24,000 and $23,500 support levels.

Besides, there was a break below a major rising channel with support near $23,750 on the 4-hours chart of the BTC/USD pair. The decline gained pace below the $22,500 level and the 55 simple moving average (4-hours). The bears even pushed the price below the $21,000 level.

A low was formed near $20,760 and the price is now consolidating losses. It is now trading below $22,000 and the 55 simple moving average (4-hours). An immediate resistance on the upside is near the $21,750 level.

It is near the 23.6% Fib retracement level of the downward move from the $24,986 swing high to $20,760 low. The first major resistance is near the $22,250 level and the 55 simple moving average (4-hours). The next major resistance on the upside is near the $22,850 level.

The 50% Fib retracement level of the downward move from the $24,986 swing high to $20,760 low is also near $22,850, above which the price could rise towards the $24,000 zone. Any more gains might send the price towards the $25,000 zone.

If there is no upside break, the price might continue to decline below $21,000. The next key support is near the $20,700 level, below which the price might accelerate lower. In the stated case, the price could decline towards the $20,000 level.

Bitcoin Price

Looking at the chart, bitcoin price is clearly trading below $22,000 and the 55 simple moving average (4-hours). Overall, the price could continue to decline further it there is no recovery above the $21,750 resistance.

Technical Indicators

4 hours MACD – The MACD is now losing momentum in the bearish zone.

4 hours RSI (Relative Strength Index) – The RSI is now below the 50 level.

Key Support Levels – $21,000 and $20,700.

Key Resistance Levels – $21,750, $22,250 and $22,850.

Tags: bitcoin, BTC