Bitcoin’s Price Begins Corrective Drop and May Go Even Lower
The Bitcoin price reached a new monthly high of $21,469 before beginning a decline. BTC might drop below $20,600 before beginning a new uptrend.
The price of Bitcoin held above the $20,600 and $20,500 marks. BTC gathered momentum for a breakthrough over the $21,000 resistance zone and a closure above the 100-hour simple moving average.
The price even surpassed the $21,200 mark. A peak was reached at around $21,469 prior to the bears losing control. Recently, a downward correction occurred below the $21,200 mark. The price fell below the 23.6% Fibonacci retracement level of the upward run from the swing low of $20,050 to the high of $21,469.
Nonetheless, bulls were aggressive at $20,900 and the 100-hour simple moving average. The current Bitcoin price is above $20,500 and the 100-hour simple moving average.
Near the $21,050 level is an immediate obstacle on the upswing. The first significant resistance level is at $21,150. On the BTC/USD hourly chart, there is also a strong negative trend line forming with resistance around $21,150.
A decisive rise over the resistance of the trend line and $21,200 might drive the price above $21,500. The next significant barrier is located at $22,000, over which the price may move to the $22,500 region.
Bitcoin might continue its drop if it is unable to surpass the $21,150 barrier zone. Near the $20,850 zone and 100 hourly simple moving average is urgent support on the downside.
The next significant support is close to the $20,600 zone. A decisive fall below the $20,600 support might lead to more price declines. In this instance, the price may fall to around $20,200.