Bitcoin price faced a major rejection near $20,500 on the daily chart. BTC/USD must stay above $18,000 to avoid a significant downside break.
Bitcoin Price Starts Fresh Decline
This month, bitcoin price failed to clear the $22,800 resistance zone. The BTC/USD pair traded as high as $22,794 and started a fresh decline. There was a clear move below the $22,000 and $21,500 support levels.
The price declined below the $20,000 support zone and the 50-day simple moving average (blue). It traded as low as $18,210 and recently started an upside correction. There was a recovery wave above the $19,200 level.
Bitcoin daily chart | Source: BTCUSD on TradingView.com
The bulls were able to push the price above the $20,000 resistance zone. However, the price faced a strong rejection near the $20,500 zone and bitcoin stayed below the 50-day simple moving average (blue).
It seems like the 50% Fib retracement level of the key decline from the $22,794 swing high to $18,210 low acted as a resistance. The price is now back below $19,500 and might continue to move down.
The first major support is near the $18,500 and $18,200 levels. The main breakdown support sits at $17,640, below which the price could gain bearish momentum. In the stated case, the price may perhaps test the $16,400 support.
On the upside, an immediate resistance is near the $20,000 level. The next key resistance might be near the $20,500 level and the 50 simple moving average (4-hours, blue).
Besides, there is a key bearish trend line in place with resistance at $20,600 on the daily chart. It is near the 61.8% Fib retracement level of the key decline from the $22,794 swing high to $18,210 low. A clear move above the trend line resistance and $21,000 could start a steady increase.
In the stated case, the price might test the $22,000 resistance. If the bulls push the price above the $22,000 barrier, the price might retest the $22,800 pivot zone.
Overall, bitcoin price is showing bearish signs below the $20,000 support. The current daily chart is showing bearish signs and the price might struggle to stay above $18,500. Conversely, the price may perhaps start a fresh upward move towards $20,500 or $21,000.
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