Bitcoin rate trims gains, why BTC may dive to new monthly low

Bitcoin failed to hold above the $20,000 resistance against the US dollar. BTC is sliding and may even break the $18,250 support zone.

• Bitcoin failed to hold above the $20,000 resistance and started another decline.
• The price is trading below $19,000 and the 100 hourly simple moving average.
• There was a break below an important bullish trend line with support near $19,450 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair may accelerate lower below the $18,250 support zone in the short term.

Bitcoin price restart decline

Bitcoin price attempted a decent upward move above the $19,500 resistance. BTC even climbed above the $20,000 resistance and the 100 hourly simple moving average.

However, the crypto market faced renewed selling interest after the US dollar regained strength. As a result, the bitcoin price peaked near the $20,383 level and started another decline. It was a strong move below the $20,000 level.

Also, there was a break below an important bullish trend line with support near $19,450 on the hourly chart of the BTC/USD pair. The pair fell below the 61.8% Fib retracement level of the upward move from the $18,645 swing low to $20,383 high.

It is now trading below $19,000 and the 100 hourly simple moving average. An immediate support on the downside is near the $18,600 level, with a bearish angle. On the upside, an immediate resistance is near the $19,000 level.

Source: BTCUSD on TradingView.com

The next major resistance is near the $19,200 zone and the 100 hourly simple moving average. A close above the $19,200 level could start a decent rally. In the given case, the price can rise towards 19,500 dollars. Any further gains could push the price higher towards the $20,000 resistance zone.

More losses in BTC?

If bitcoin fails to break above the $19,200 resistance zone, it may continue to move lower. An immediate support on the downside is near the $18,500 zone.

The next major support is near the $18,250 zone. It is near the 10236 Fib extension level for the upside move from the $18,645 swing low to $20,383 high. Any further losses may require a drop towards the $17,500 support zone in the coming sessions.

Technical indicators:

Hourly MACD – MACD is now picking up speed in the bearish zone.

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

Major support levels – $18,500, followed by $18,250.

Major resistance levels – $19,000, $19,200 and $20,000.