TA: Bitcoin Price Consolidates, Why Recovery Could Be Capped

Aayush Jindal

1 year ago

2 mins read

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Bitcoin extended losses below the $21,000 support against the US Dollar. BTC is consolidating and any upsides might face hurdles near $21,500.

Bitcoin remained in a bearish zone and traded below the $21,000 level.
The price is now trading below the $21,500 level and the 100 hourly simple moving average.
There is a key bearish trend line forming with resistance near $21,650 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair might correct higher but upsides might be limited above $21,500.

Bitcoin Price Remains In A Bearish Zone

Bitcoin price remained in a bearish zone after it settled below the $22,000 support zone. It consolidated near the $21,000 zone for some time before there were more losses.

The price declined below the $21,000 level but downsides were limited. A low is formed near $20,750 and the price is now consolidating losses. It is now trading below the $21,500 level and the 100 hourly simple moving average.

There was a minor upside above the $21,000 level. The price cleared the 23.6% Fib retracement level of the recent drop from the $22,250 swing high to $20,750 low.

On the upside, bitcoin price could face resistance near the $21,500 level. It is near the 50% Fib retracement level of the recent drop from the $22,250 swing high to $20,750 low. The next key resistance is near the $21,650 zone. There is also a key bearish trend line forming with resistance near $21,650 on the hourly chart of the BTC/USD pair.

Source: BTCUSD on TradingView.com

A close above the $21,650 resistance zone could set the pace for a decent increase. In the stated case, the price may perhaps rise towards the $22,000 level. The next major resistance sits near the $22,500 level.

More Losses in BTC?

If bitcoin fails to start a recovery wave above the $21,500 level, it could continue to move down. An immediate support on the downside is near the $21,000 level.

The next major support now sits near the $20,750 and $20,500 levels. A close below the $20,500 support zone might increase selling pressure and the price might test $20,000 in the near term.

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 near the 50 level.

Major Support Levels – $21,000, followed by $20,750.

Major Resistance Levels – $21,500, $21,650 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.

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