Bitcoin’s price recovery is facing obstacles as the cryptocurrency is retracing its gains (it gained support against the US dollar at $20,750), but it is coming up against resistance at $21,500 and the 100 hourly SMA.
After a sharp drop, Bitcoin found support at $20,750 level.
The price is currently trading below the $21,500 level as well as the 100 hourly simple moving average.
On the hourly chart of the BTC/USD pair, there was a break over a key negative trend line with resistance above $21,270.
If there is a decisive move over the $22,000 resistance, the pair might recover higher.
Anything can happen in an instant, but for the moment it appears that Bitcoin’s price recovery is facing obstacles and seemingly hard ones.
Bitcoin Price Is Struggling
Bitcoin’s price has begun to fall below the $22,000 support level. Before the bulls came, BTC fell below the $21,200 and $21,000 support levels.
A bottom was set around $20,797, and the price began a short-term uptrend. A slight upward movement occurred above the $21,000 barrier. Furthermore, on the hourly chart of the BTC/USD pair, there was a break above a strong negative trend line with resistance above $21,270.
However, the Bitcoin price encountered significant resistance between $21,500 and the 100 hourly simple moving average. It is still fighting to break through the $21,500 barrier level.
On the upside, the 100 SMA around $21,450 serves as an immediate barrier. The first significant obstacle on the upside is located at the $21,650 level. It is near the 23.6% Fib retracement level of the key decline from the swing high of $24,415 to the low of $20,797.
The main barrier is forming near the $22,000 level. If the price continues to rise, it may reach the 50% Fib retracement level of the crucial slide from the $24,415 swing high to the $20,797 low. A closing above the $22,500 and $22,650 resistance levels might send the price higher.
Are There Going To Be More Losses?
If bitcoin fails to break through the $21,500 resistance zone and the 100 hourly SMA, it may continue to fall. On the downside, there is immediate support at the $21,000 level.
The next big support is presently at $20,800. A break and closing below the $20,800 barrier might trigger another severe plunge. In the mentioned instance, the price may fall near the $20,000 mark.
Read more Bitcoin news.
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]