Why Bitcoin Price Begins A Constructive Correction And BTC Could Fall Further

Bitcoin price traded to a monthly high of $21,469 before starting its downward correction. BTC could fall to $20,600 before starting a new rally.

• Bitcoin paced past the $21,000 resistance zone before facing sellers.
• The price is trading above $20,500 and the 100 hour simple moving average.
• The BTC/USD pair’s hourly chart (data feed from Kraken) has formed a significant bearish trend line with resistance near $21,150.
• A fresh rally is possible for the pair once it clears the $21,150 and $21,400 resistance levels.

Bitcoin price downward revision

Bitcoin price continued to bid above the $20,600 and $20,500 levels. BTC has broken above the $21,000 resistance zone and above the 100-hour simple moving average.

The price climbed to levels above $21,200. A high was formed near $21,469 before the bulls lost control. There has been a recent downward correction below $21,200. The price has broken below the 23.6% Fib retracement level of the move from swing lows of $20,050 to highs of $21,469.

However, the bulls were active near $20,900 and the 100-hour simple moving average. Bitcoin’s price is currently trading above $20,500 with an hourly simple moving average above 100.

On the upside, the immediate resistance is near $21,050. The first big resistance is near $21,150. The hourly chart of the BTC/USD pair also has a major bearish trend line forming resistance near $21,150.

Source: BTCUSD on TradingView.com

A clear break above the trendline resistance and $21,200 could lead the price towards $21,500. The next big resistance is near $22,000, above which the price can probably move towards the $22,500 zone.

Further loss of BTC?

If Bitcoin fails to clear the $21,150 resistance zone, it may resume its decline. Near-term support for the downside is near $20,850 and the 100-hour Simple Moving Average.

The next major support is near $20,600. A sharp break below the $20,600 support could lead to further declines. In this case, the price could possibly drop towards the $20,200 level.

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 – $20,600 followed by $20,200.

Key resistance levels – $21,150, $21,400, $22,000.