Home » Bitcoin Price Lacking Momentum Above $21k, BTC Holders Are Safe: Here’s Why

Bitcoin Price Lacking Momentum Above $21k, BTC Holders Are Safe: Here’s Why

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Bitcoin price has started a downward correction from $21,000 against the US dollar. BTC could start a new rally if it stabilizes above the $20,000 support.

  • Bitcoin is slowly moving down from the $21,000 resistance zone.
  • The price is trading below $20,500 and the 100 hour simple moving average.
  • The BTC/USD pair’s hourly chart (data feed from Kraken) has formed an important descending channel with resistance near $20,700.
  • The pair could start another rally if it stays above the $20,000 support zone.

Bitcoin Price Begins Downward Correction

Bitcoin Price Made Another Attempt to Clear $21,000 resistance zoneHowever, BTC failed to gain momentum beyond the $21,000 resistance zone.

The price has started a new downward correction with a high near $21,074. It broke below the $20,600 and $20,500 levels. The bears have pushed the price below the 50% Fib retracement level of the move from swing lows of $20,029 to highs of $21,074.

Bitcoin price is currently trading below $20,500 100 hour simple moving averageThere is also a major descending channel on the hourly chart of the BTC/USD pair with resistance near $20,700.

The price is currently holding the $20,450 support zone. Approaching the 61.8% Fib retracement level of the upward move from the swing low of $20,029 to the high of $21,074. On the upside, resistance near $20,600 and the 100-hour simple moving average will soon come into play.

sauce: BTCUSD on TradingView.com

The first big resistance is near the $20,700 level and the channel trend line. The next major resistance is still near $21,000. A clear break above the $21,000 resistance could lead to a steady rally towards the $22,000 resistance. Any further gains will open the door to a test of the $22,500 resistance zone.

Further loss of BTC?

If Bitcoin fails to break out of the $20,700 resistance zone, it could continue to fall. Near-term support on the downside is near $20,450.

The next major support is near $20,200. Primary support is $20,000. A close below $20,000 could open the door for significant short-term declines.

Technical indicators:

Hourly MACD – The MACD is currently pacing in the bearish zone.

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

Major Support Level – $20,200 followed by $20,000.

Main resistance levels – $20,600, $20,700, and $21,000.

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