Bitcoin price is moving lower below $20,000. BTC/USD could start a fresh increase if it stays above the key $18,550 support zone.
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This past week, bitcoin price faced a strong barrier near the $20,500 resistance zone. The BTC/USD pair made two attempts to gain strength above the $20,500 resistance zone.
However, the bulls failed to gain strength for a push above the $20,500 resistance. As a result, there was a bearish reaction below the $20,000 support level and the 50 simple moving average (4-hours, blue). Altcoins such as ethereum, cardano, and BNB also faced a fresh bearish wave.
Bitcoin price 4-hours chart | Source: BTCUSD on TradingView.com
There was a drop below the $19,500 and $19,400. Besides, the price traded below a key bullish trend line at $19,450 on the 4-hours chart.
There was a clear move below the 76.4% Fib retracement level of the upward move from the $18,943 swing low to $20,543 high. It is now trading well below $20,000 and the 50 simple moving average (4-hours, blue).
Bitcoin is now approaching the $18,950 support zone. The next substantial and breakdown support sits near the $18,550 level. It coincides with the 1.236 Fib extension level of the upward move from the $18,943 swing low to $20,543 high.
A clear move below the $18,550 support could spark another sharp decline. In the stated case, the price may perhaps decline towards the $17,200 support.
On the upside, an immediate resistance is near the $19,350 level. The first major resistance is near the $19,650 level and the 50 simple moving average (4-hours, blue). A clear move above the $19,650 level might resend the price towards the $20,500 resistance zone.
Any more gains could set the pace for a test of the $22,000 resistance. The next major resistance sits near the $22,600 level.
Overall, bitcoin price is still trading in a bearish zone below the $20,000 pivot level. The main support on the downside sits near the $18,550 zone, below which there is a risk of a major downtrend. Conversely, the price might start a fresh increase and clear the $19,650 resistance.
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