Bitcoin Price Crashes To 20K, Why Upsides Turned Attractive To Sellers

Aayush Jindal

Last Updated: June 11, 2024 2:34 pm

2 mins read

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Bitcoin price declined over 8% and tested the $20,000 support. BTC might correct higher, but upsides might be limited above the $21,200 zone.

Bitcoin down over 8% and there was a spike below the $20,000 support.
The price is trading below $21,000 and the 100 hourly simple moving average.
There is a crucial bearish trend line forming with resistance near $21,300 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could correct higher, but the bears might be active near $21,000.

Bitcoin Price Takes Major Hit

Bitcoin price failed to rise above the $22,200 resistance zone. BTC faced a strong rise in selling interest, resulting in a drop below the $21,500 support zone.

The price is down over 8% and there was a crash towards the $20,000 support. The price even spiked below the $20,000 support zone. A new monthly low is formed near $19,800 and the price is now consolidating losses near the $20,000 zone.

Bitcoin price is now trading below $21,000 and the 100 hourly simple moving average. An immediate resistance is near the $20,400 level. It is near the 23.6% Fib retracement level of the recent decline from the $22,600 swing high to $19,800 low.

The next major resistance is near the $21,200 zone. There is also a crucial bearish trend line forming with resistance near $21,300 on the hourly chart of the BTC/USD pair. The trend line is close to the 50% Fib retracement level of the recent decline from the $22,600 swing high to $19,800 low.

Source: BTCUSD on TradingView.com

The main resistance is now near the $22,000 zone. A close above the $22,000 resistance might start a decent increase in the coming days. The next key resistance is near the $22,600 zone, above which the price might gain bullish momentum and test $23,000.

More Losses in BTC?

If bitcoin price fails to clear the $21,000 resistance and the trend line, it could continue to move down. An immediate support on the downside is near the $20,000 zone.

The next major support is near the $19,800 zone, below which the price might drop to $19,250. The next major support is near the $19,000 level. Any more losses might send the price towards the $18,400 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 30 level.

Major Support Levels – $20,000, followed by $19,800.

Major Resistance Levels – $20,400, $21,000 and $22,000.

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
As a software engineer, Aayush harnesses the power of technology to optimize trading strategies and develop innovative solutions for navigating the volatile waters of financial markets. His background in software engineering has equipped him with a unique skill set, enabling him to leverage cutting-edge tools and algorithms to gain a competitive edge in an ever-evolving landscape.

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In a world where uncertainty reigns supreme, Aayush Jindal stands as a guiding light, illuminating the path to financial success with his unparalleled expertise, unwavering integrity, and boundless enthusiasm for the markets.

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