Bitcoin Price Could Top In Short Term, Why Dips Might Be Attractive

Aayush Jindal

1 year ago

2 mins read

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Bitcoin price is still struggling to clear the $21,500 resistance zone. BTC could correct further lower if there is a clear move below the $20,500 support zone.

Bitcoin struggled to clear the $21,500 resistance zone and corrected lower.
The price is trading below $21,000 and the 100 hourly simple moving average.
There was a break below a key bullish trend line with support near $21,150 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could continue to move down below the $20,650 and $20,500 support levels.

Bitcoin Price Starts Downside Correction

Bitcoin price failed to clear the key hurdle near the $21,500 resistance zone. BTC started a downside correction from the $21,639 swing high. It traded below the $21,500 and $21,250 levels.

There was a break below a key bullish trend line with support near $21,150 on the hourly chart of the BTC/USD pair. The price even broke the $20,800 support zone. A low is formed near $20,395 and the price is now showing a few bearish signs.

Bitcoin price is now trading below $21,000 and the 100 hourly simple moving average. It is consolidating above the 23.6% Fib retracement level of the recent decline from the $21,639 swing high to $20,395 low.

An immediate resistance is near the $20,850 level. The next major resistance is near the $21,080 zone. It is near the 50% Fib retracement level of the recent decline from the $21,639 swing high to $20,395 low, above which the price might gain bullish momentum.

Source: BTCUSD on TradingView.com

In the stated case, the price may perhaps rise towards the $21,500 level. Any more gains might send btc price towards the $22,000 level.

More Losses in BTC?

If bitcoin price fails to clear the $21,080 resistance, it could continue to move down. An immediate support on the downside is near the $20,600 zone.

The next major support is near the $20,500 zone, below which the price might accelerate lower towards $20,000. Any more losses might send the price to $19,500, where the bulls may possibly take a stand.

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 50 level.

Major Support Levels – $20,500, followed by $20,000.

Major Resistance Levels – $21,080, $21,250 and $21,500.

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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