Bitcoin price has corrected downwards from $21,000. However, the asset is likely to start a fresh rise and it may sustain above the $20,000 level.
off-target
The market’s top crypto asset is slowly declining from the $21,000 resistance. It is currently trading at $20,498, below its 100 hourly simple moving average. A major descending channel is now forming with resistance at $20,700.
But Bitcoin kept trying to approach the $21,000 resistance area. However, it has failed to gather any strong momentum to retake the position. Faced with this decline, the $21,000 resistance level presents a new challenge for traders.
The last high made was at $21,074, from where the price resumed the decline. However, there is a slight move above the $20,600 and $20,500 areas.
Bitcoin bears are responsible for pushing the price of the asset below the 50% Fibonacci retracement zone. It rose from a low of $20,029 to $21.074.
Bitcoin is currently trading below $20,500, below the expected 100 hourly simple moving average. On the hourly chart of the BTC/USD pair, there is also a major descending channel near $20,700.
The price is currently holding the support at $20,498, which is close to the 61.8% Fibonacci retracement area. It is also in an uptrend ranging from a low of $20,029 to a high of $21,074.
future possibilities
But if the price rises from this point, the first point of resistance will be met at $20,600. It will also be at the 100 hourly simple moving average.
However, the main resistance lies at $20,700 and the trendline of the channel. Therefore, as expected, the next major resistance will be near $21,000. If there is a decisive rise above $21,000, Bitcoin could make steady progress towards $22,000.
Any further increase would open the door for a test of $22,500. It could prove to be a formidable resistance point to overcome.
However, if Bitcoin fails to break above the $20,700 line, it may continue to decline. The first point of support on the downside path is $20,450.
The next major support line after that will be $20,200. From then on, the price of Bitcoin will reach $20,000. Any downside break below $20,000 could lead to a sharp drop in the asset in the near term.
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