By Shelly Melancon (Switzerland)
Bitcoin price has begun a downward correction from its $21,000 post. The asset might, however, begin a fresh rise it could sustain above the $20,000 level.
Shifting Off Target
The market’s top crypto asset is slowly declining from the $21,000 resistance area. It currently trades at $20,498 and below its 100-hour simple moving average. A major downward channel is now being created with some resistance at the $20,700 line.
But Bitcoin keeps making attempts close to the $21,000 resistance area. Nevertheless, it has not been able to gather any serious momentum to retake the position. The resistance at $21,000 poses a new challenge to traders in the face of this decline.
The last high level created was at $21,074 from where the price resumes this round of decline. There was, however, a slight movement above the $20,600 and $20,500 areas.
The Bitcoin bears were responsible for pushing the asset’s price under the 50% Fibonacci retracement area. It went on an upward movement from the low swing of $20,029 to $21.074.
Bitcoin currently trades under $20,500 and below the expected 100-hourly simple moving average. There is equally a major downward channel around the $20,700 present on the BTC/USD pair’s hourly chart.
The price currently holds at the $20,498 support level which is close to the 61.8% Fibonacci retracement area. It is also on the upward side of the move around the low swing of $20,029 to the high swing of $21,074.
Future Possibilities
But if the price increases from this point, the first point of resistance will be encountered at $20,600. It will also be at the 100-hourly simple moving average.
The major resistance, however, is at $20,700 and the channel’s trend line. The next major resistance, therefore, will be close to $21,000, as expected. If there is a decisive rise above $21,000, then Bitcoin might head steadily toward $22,000.
Any further increase would open the gates toward testing $22,500. It might prove to be a formidable resistance point to overcome.
But if Bitcoin fails to beat the $20,700 line, however, it might keep declining downward. The first point of support on the downward path is $20,450.
The next major line of support after that will be $20,200. From that point, the Bitcoin price would be looking at $20,000. Any more downward break under $20,000 could lead to a heavy decline for the asset in the short term.
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