BTC / USD
23,024.00
0.56%
(-130)
ETH / USD
1,578.28
0.94%
(-15.03)
XRP / USD
0.40
1.7%
(-0.01)
LTC / USD
94.55
0.12%
(+0.11)
EOS / USD
1.03
3.93%
(-0.04)
BCH / USD
131.09
2.38%
(-3.19)
ADA / USD
0.38
2.97%
(-0.01)
XLM / USD
0.09
2.9%
(-0)
NEO / USD
7.97
2.53%
(-0.21)
XEM / USD
0.04
0.6%
(0)
DASH / USD
58.96
1.95%
(-1.17)
USDT / USD
1.00
0%
(0)
BNB / USD
308.84
1.09%
(-3.4)
QTUM / USD
2.58
4.41%
(-0.12)
XVG / USD
0.00
1.9%
(-0)
ONT / USD
0.20
3.32%
(-0.01)
ZEC / USD
45.06
1.21%
(-0.55)
STEEM / USD
0.19
1.31%
(-0)

Bitcoin Price Starts Constructive Correction, Why BTC Could Drop Further

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Bitcoin price traded to a new monthly high at $21,469 before it started a downside correction. BTC could drop towards $20,600 before it starts a fresh increase.

  • Bitcoin gained pace above the $21,000 resistance zone before it faced sellers.
  • The price is trading above $20,500 and the 100 hourly simple moving average.
  • There is a key bearish trend line forming with resistance near $21,150 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could a fresh increase if it clears the $21,150 and $21,400 resistance levels.

Bitcoin Price Corrects Lower

Bitcoin price remained well bid above the $20,600 and $20,500 levels. BTC gained pace for a move above the $21,000 resistance zone and a close above the 100 hourly simple moving average.

The price even moved above the $21,200 level. A high was formed near $21,469 before the bulls lost control. Recently, there was a downside correction below the $21,200 level. The price declined below the 23.6% Fib retracement level of the upward move from the $20,050 swing low to $21,469 high.

However, the bulls were active near the $20,900 zone and the 100 hourly simple moving average. Bitcoin price is now trading above $20,500 and the 100 hourly simple moving average.

On the upside, an immediate resistance is near the $21,050 level. The first major resistance is near the $21,150 level. There is also a key bearish trend line forming with resistance near $21,150 on the hourly chart of the BTC/USD pair.

Source: BTCUSD on TradingView.com

A clear move above the trend line resistance and $21,200 might send the price towards $21,500. The next major resistance is near $22,000, above which the price may perhaps rise towards the $22,500 zone.

More Losses in BTC?

If bitcoin fails to clear above the $21,150 resistance zone, it could resume its decline. An immediate support on the downside is near the $20,850 zone and 100 hourly simple moving average.

The next major support is near the $20,600 zone. A clear move below the $20,600 support might push the price further lower. In this case, the price may perhaps decline towards the $20,200 level.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

Major Support Levels – $20,600, followed by $20,200.

Major Resistance Levels – $21,150, $21,400 and $22,000.

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