5 months ago 2 min read

The Bears Aren't Done Yet Playing as Bitcoin Price Takes a Major Drop


Key Takeaways:

• Bitcoin started out poorly and lost nearly 10% of its value.

• The price is trading below both the 100 hourly simple moving average and the $19,500 mark.

• On the hourly chart of the BTC/USD pair, a connecting negative trend line is forming with resistance close to $18,380.

• The $17,500 and $16,800 support levels may serve as the pair's next targets for further decline.

Bitcoin's Value is Plummeting

After falling below the $20,000 support level, the price of bitcoin began a sharp slide. Due to FTX's troubles, the situation worsened and there was intense selling pressure on the cryptocurrency market. Below the $19,500 and $19,000 levels, BTC dropped.

The price was successfully pushed below the crucial $18,500 support by the bears. Even lower than $18,000, the price eventually stabilized, much below the 100 hourly simple moving average. Near $17,276 a low was created, and the price has since corrected higher.

The price increased above $18,000. The price of bitcoin increased beyond the 23.6% Fibonacci retracement level of the most recent downturn from the swing high of $20,670 to the low of $17,276.

Currently, the price is trading below $19,000 as well as the 100 hourly simple moving average. Near the $18,400 mark, there is immediate resistance on the upside. On the hourly chart of the BTC/USD pair, a connecting negative trend line is also developing, with resistance located close to $18,380.

BTC 1H Chart | Source: TradingView, aayushjindal

The $19,000 mark represents the first significant resistance. It is very close to the 50% Fib retracement level of the most recent collapse from the swing high of $20,670 to the low of $17,276. A definite move over the trend line resistance and $19,000 might signal the beginning of a new rise to $20,000 and beyond. The price may test the $21,000 region if it rises above the next significant resistance near $20,500.

Additional Bitcoin Losses?

Bitcoin may resume its drop if it is unable to launch a comeback wave over the $19,000 resistance area. Near $18,000 is an immediate support on the downside.

The area around $17,250 is the next significant support. Price declines could be accelerated with a clear break below the $17,250 support level. In this scenario, the price might drop to around $16,800.

Technical Indicators:

Hourly MACD: The MACD is currently accelerating toward the bearish zone.

Relative Strength Index (RSI) for BTC/USD on an hourly basis is currently below the 50 mark.

$18,000 is the Major Support Level, followed by $17,250.

$18,400, $19,000, and $20,000 are the Major Resistance Levels.

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