Why Bitcoin Price Makes a U-Turn and BTC Drops to $18,000

Bitcoin has broken below the $20,000 support zone against the US dollar to begin a new decline. BTC has been trading below $19,000 and remains at risk of a rally to $18,000.

• Bitcoin started a new decline and traded below the $19,500 support.
• The price is currently trading below $19,200 and the 100 hour simple moving average.
• The BTC/USD pair’s hourly chart (data feed from Kraken) has broken below the bullish trend line supporting $19,850.
• The pair is now at risk of heading to the $18,000 support zone in the near future.

Bitcoin Price Begins New Decline

Bitcoin price failed to break out of the $20,500 resistance level.BTC started a new decline and traded below the $20,000 and $19,500 support levels.

Furthermore, on the hourly chart of the BTC/USD pair, the pair has broken below the bullish trendline supporting $19,850. The pair has accelerated below the $19,200 level and the 100 hour simple moving average. It fell to $19,000 and then to $18,706.

Bitcoin price is currently consolidating losses below $19,200 and the 100 hour simple moving average. On the upside, the immediate resistance is near $19,050. This is close to the 23.6% Fib retracement level of the recent decline from the high of $20,197 to the low of $18,706.

The next major resistance is near $19,350. This is in line with the 50% Fib retracement level from the recent swing high of $20,197 to the low of $18,706.

Source: BTCUSD on TradingView.com

The main barriers are currently forming around the $20,000 zone and the 100 hour simple moving average. A close above the $20,000 resistance could start a new rally.

Further loss of BTC?

Bitcoin may continue to fall if it fails to break out of the $19,050 resistance zone and start a wave of recovery. Near-term support on the downside is near $18,700.

The next major support is near $18,550. A clear break below the $18,700 and $18,550 levels could pave the way for the $18,000 levels.

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 – $18,700, followed by $18,550.

Key resistance levels – $19,050, $19,300, $19,500.