Bitcoin Price Breaking This Confluence Support Could Spark a Major Drop

Nov 7, 2022

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Bitcoin Price Breaking This Confluence Support Could Spark a Major Drop

Originally posted here.
By: Aayush Jindal

Overview

Bitcoin price failed to stay above $20,600 and extended losses. BTC must stay above $20,000 to avoid a major decline in the near term. Bitcoin started a downside correction and broke a major support at $20,600. The price is trading below $20,600 and the 100 hourly simple moving average. There is a major bearish trend line forming with resistance near $21,050 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair could revisit the main $20,000 support zone in the near term. Bitcoin Price Dips Further Bitcoin price formed a swing high near the $21,469 level and recently started a downside correction. BTC declined below the $21,200 and $21,000 levels. The bears were able to push the price below the key $20,600 support and the 100 hourly simple moving average. There was a clear move below the 50% Fib retracement level of the main increase from the $20,050 swing low to $21,470 high. The decline gained pace below the $20,500 level. Bitcoin price even tested the 76.4% Fib retracement level of the main increase from the $20,050 swing low to $21,470 high. The price is now trading below $20,600 and the 100 hourly simple moving average. On the upside, an immediate resistance is near the $20,600 level. The first major resistance is near the $21,000 level. There is also a major bearish trend line forming with resistance near $21,050 on the hourly chart of the BTC/USD pair. Source: BTCUSD on TradingView.com A clear move above the trend line resistance and $21,200 might start a fresh increase towards $21,500. The next major resistance is near $22,000, above which the price could test the $22,500 zone. More Losses in BTC? If bitcoin fails to start a recovery wave above the $20,600 resistance zone, it could resume its decline. An immediate support on the downside is near the $20,380 level. The next major support is near the $20,050 zone. A clear move below the $20,050 support might push the price into a bearish zone. In this case, the price may perhaps decline towards the $19,200 level. Technical indicators: Hourly MACD – The MACD is now gaining pace in the bearish zone. Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level. Major Support Levels – $20,380, followed by $20,050. Major Resistance Levels – $20,600, $21,000 and $21,200.

The Post

Bitcoin price failed to stay above $20,600 and extended losses. BTC must stay above $20,000 to avoid a major decline in the near term.

Bitcoin started a downside correction and broke a major support at $20,600.

The price is trading below $20,600 and the 100 hourly simple moving average.

There is a major bearish trend line forming with resistance near $21,050 on the hourly chart of the BTC/USD pair (data feed from Kraken).

The pair could revisit the main $20,000 support zone in the near term.

Bitcoin Price Dips Further

Bitcoin price formed a swing high near the $21,469 level and recently started a downside correction. BTC declined below the $21,200 and $21,000 levels .

The bears were able to push the price below the key $20,600 support and the 100 hourly simple moving average. There was a clear move below the 50% Fib retracement level of the main increase from the $20,050 swing low to $21,470 high.

The decline gained pace below the $20,500 level. Bitcoin price even tested the 76.4% Fib retracement level of the main increase from the $20,050 swing low to $21,470 high.

The price is now trading below $20,600 and the 100 hourly simple moving average . On the upside, an immediate resistance is near the $20,600 level. The first major resistance is near the $21,000 level. There is also a major bearish trend line forming with resistance near $21,050 on the hourly chart of the BTC/USD pair.

Source: BTCUSD on TradingView.com

A clear move above the trend line resistance and $21,200 might start a fresh increase towards $21,500. The next major resistance is near $22,000, above which the price could test the $22,500 zone.

More Losses in BTC?

If bitcoin fails to start a recovery wave above the $20,600 resistance zone, it could resume its decline. An immediate support on the downside is near the $20,380 level.

The next major support is near the $20,050 zone. A clear move below the $20,050 support might push the price into a bearish zone. In this case, the price may perhaps decline towards the $19,200 level.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

Major Support Levels – $20,380, followed by $20,050.

Major Resistance Levels – $20,600, $21,000 and $21,200.

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