Bitcoin price takes a big hit, why the bears aren’t done yet

Bitcoin price fell over 10% and even rose below $18,000. BTC remains at risk of more losses as FTX faces more heat.

• Bitcoin started failed to recover the ground and fell over 10%.
• The price is trading below $19,500 and the 100 hourly simple moving average.
• A continuous bearish trend line is forming with resistance near $18,380 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair may continue to move down towards the $17,500 and $16,800 support levels.

Bitcoin Price Nosedives

Bitcoin price started a big decline after it settled below the $20,000 support zone. FTX’s problems escalated the problems and the crypto market faced strong selling pressure. BTC fell below the $19,500 and $19,000 levels.

The bears were able to push the price below the key support at $18,500. The price even dips below the $18,000 level and settled well below the 100 hourly simple moving average. A low was formed near $17,276 and the price recently corrected higher.

There was a move above the $18,000 level. Bitcoin price climbed above the 23.6% Fib retracement level in the recent decline from the $20,670 high to the $17,276 low.

The price is now trading below $19,000 and the 100 hourly simple moving average. On the upside, an immediate resistance is near the $18,400 level. There is also a continuous bearish trend line forming with resistance near $18,380 on the hourly chart of the BTC/USD pair.

Source: BTCUSD on TradingView.com

The first major resistance is near the $19,000 level. It is near the 50% Fib retracement level of the recent decline from the $20,670 swing high to the $17,276 low. A clear move above the trendline resistance and $19,000 could start another rally towards $20,000. The next major resistance is near $20,500, above which the price could test the $21,000 zone.

More losses in BTC?

If bitcoin fails to start a recovery wave above the $19,000 resistance zone, it could resume its decline. An immediate support on the downside is near the $18,000 level.

The next major support is near the $17,250 zone. A clear move below the $17,250 support could push the price further down. In this case, the price might drop towards the $16,800 level.

Technical indicators:

Hourly MACD – MACD is now picking up speed in the bearish zone.

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

Major support levels – $18,000, followed by $17,250.

Major resistance levels – $18,400, $19,000 and $20,000.