Bitcoin price turns red as bears take over the crypto market

Bitcoin is showing bearish signs below the $20,000 support zone against the US dollar. BTC may accelerate further lower below the $19,500 support zone.

• Bitcoin started another decline, trading below the $20,000 support.
• The price is now trading below $20,200 and the 100 hourly simple moving average.
• A large bearish trend line is forming with resistance near $20,050 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could start a significant decline if it breaks the $19,500 support zone.

Bitcoin price is still in danger

Bitcoin price attempted a recovery wave above the $20,300 resistance level. However, there was no upside breakout and the price remained in a bearish zone below $20,500.

Recently Ethereum saw a big bearish reaction below the $1500 support. As a result, BTC also moved a few points lower and fell below the $20,000 support. It even traded below $19,600 and tested the $19,500 support zone.

A low is forming near $19,509 and the price is now consolidating losses. Bitcoin price is now trading below $20,200 and the 100 hourly simple moving average.

On the upside, an immediate resistance is near the $20,000 level. A major bearish trend line is also forming with resistance near $20,050 on the hourly chart of the BTC/USD pair. Also, the 23.6% Fib retracement level for the main decline from the $22,790 swing high to the $19,509 low is just above the trend line.

The next major resistance is near the $21,000 level and the 100 hourly simple moving average. It coincides with the 50% Fib retracement level of the main decline from the $22,790 swing high to the $19,509 low.

Source: BTCUSD on TradingView.com

A close above the $21,000 resistance could start another rally. In the aforementioned case, the price might rise towards $21,400. Any further gains could send the price towards the $22,000 resistance zone.

More losses in BTC?

If bitcoin fails to start a recovery wave above the $20,000 resistance zone, it may continue to move downwards. An immediate support on the downside is near the $19,500 zone.

The next major support is near the $19,200 levels. A clear move below the $19,500 and $19,200 levels could open the doors for a move towards the $18,500 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 – $19,500, followed by $19,200.

Major resistance levels – $20,000, $20,050 and $20,300.