Bitcoin (BTC) has started a fresh decline below the $22,000 support against the U.S. Dollar. The market leader is facing a lot of bearish pressure which might extend its losses below $20,500.
BTC’s price entered into a decline after it failed to clear the $24,000 resistance zone. This resulted in a consistent decline below the $23,500 and $23,000 levels.
Bears joined forces to build their collective strength for a move below the $22,500 support level and the 100 hourly simple moving average. Finally, the price of BTC traded below the $21,500 support level and even briefly spiked below $21,000. A low has formed near $20,994 and BTC’s price is now consolidating losses.
Hourly chart for BTC/USDT (Source: CoinMarketCap)
Looking at the upside potential for BTC, its price could face resistance near $21,650, which is near the 50% Fibonacci retracement level of the latest decline from the $22,250 swing high to the $20,994 low.
The next key resistance is near the $22,000 zone. However, there is a major bearish trend line forming with resistance near $21,950 on the hourly chart of BTC/USDT. This trend line is near the 76.4% Fibonacci retracement level of the recent decline that saw BTC’s price drop from the $22,250 swing high to a swing low at $20,994.
If BTC fails to initiate a recovery wave above the $21,650 level, then its downtrend will likely continue. Immediate support on the downside is near the $21,000 mark.
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Source: Cryptocurrency - investing.com
