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Wednesday, October 5, 2022
HomeNewsBitcoin Price Trades Heavy, Why BTC Might Quickly Check $20K

Bitcoin Price Trades Heavy, Why BTC Might Quickly Check $20K

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Bitcoin is struggling to recuperate above $21,500 towards the US Dollar. BTC is consolidating and stays at a threat of a transfer in direction of the $20,000 assist.

  • Bitcoin is consolidating above $21,000 and going through quite a lot of hurdles.
  • The worth is now buying and selling above the $21,200 stage and the 100 hourly easy shifting common.
  • There is a key bearish pattern line forming with resistance close to $22,500 on the hourly chart of the BTC/USD pair (knowledge feed from Kraken).
  • The pair may recuperate larger, however upsides may be restricted above the $22,000 resistance zone.

Bitcoin Price Faces Hurdles

Bitcoin worth remained effectively bid above the $21,000 assist zone. BTC fashioned a base above $21,000 and began a consolidation part.

There was a minor upward transfer above the $21,250 and $21,350 ranges. The worth was capable of surpass the $21,500 stage and the 100 hourly easy shifting common. However, the bears had been energetic close to the $21,640 resistance zone.

It looks like the 23.6% Fib retracement stage of the primary drop from the $24,415 swing excessive to $20,797 low is appearing as a robust resistance. Bitcoin worth is now buying and selling above the $21,200 stage and the 100 hourly easy shifting common.

On the upside, an instantaneous resistance is close to the $21,500 and $21,640 ranges. The first main resistance on the upside sits close to the $22,000 stage.

If there’s an upside break above the $22,000 resistance zone, the worth might maybe rise in direction of the $22,500 resistance zone. There can be a key bearish pattern line forming with resistance close to $22,500 on the hourly chart of the BTC/USD pair.

Source: BTCUSD on TradingView.com

The pattern line is close to the 50% Fib retracement stage of the primary drop from the $24,415 swing excessive to $20,797 low. Any extra positive factors may ship the worth in direction of the $23,000 resistance zone.

Fresh Decline in BTC?

If bitcoin fails to clear the $22,000 resistance zone, it may proceed to maneuver down. An rapid assist on the draw back is close to the $21,000 stage.

The subsequent main assist now sits close to the $20,800 stage. A transparent transfer under the $20,800 assist and the final swing low may spark a contemporary decline. In the said case, the worth may decline in direction of the $20,000 stage.

Technical indicators:

Hourly MACD – The MACD is now dropping tempo within the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now close to the 50 stage.

Major Support Levels – $21,000, adopted by $20,800.

Major Resistance Levels – $21,640, $22,000 and $22,500.

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