Bitcoin falls to $18,500 support, but bears remain at $20,500 and $20,650

Bitcoin moved down to the $18,500 support level against the US Dollar. Although BTC's price rose following that, bears are still present at the $20,500 and $20,650 levels.

Bitcoin fell towards the $18,500 support level against the US Dollar. BTC recovered sharply, but bears are still present near the $20,500 and $20,650 levels.

  • After a test of the $18,500 zone, Bitcoin climbed higher sharply.
  • The price is now trading above the $20,000 mark and near the 100-hour simple moving average.
  • A bearish trend line with resistance near $20,400 is forming on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • If there is a move above the $20,500 resistance zone, the pair could start a fresh decline.

Bitcoin Price Could Hit New High

Bitcoin price started another drop below the $20,000 support line. The price fell even lower than the $19,200 support and dropped as low as $18,800.

The price tested the $18,600 zone and fell as low as $18,617. Recently, there was a sharp upward move and the price climbed above the $19,500 resistance. The 50% Fib retracement level of the key drop from the $21,697 swing high to $18,617 low was overcome.

The price of Bitcoin is facing strong resistance near the $20,500 zone and the 100 hourly SMA. A major bearish trend line with resistance near $20,400 has also formed on the hourly chart of the BTC/USD pair.

The Fibonacci retracement level at which the key drop from $21,697 to $18,617 was 61.8% is close to the trend line. The resistance at $20,500 is immediate on the upside.

The next key resistance is near the $20,950 zone. If the price breaks above the trend line resistance and then $20,950, it could move further higher. In that case, it could rise to the $21,650 level. The next major resistance sits near the $22,500 level.

This is not the first time that Bitcoin has lost value.

If bitcoin fails to overcome the $20,500 resistance level, it could start another drop. The immediate support on the downside is near the $20,000 mark.

The next major support now sits near the $19,800 price level, below which the price could drop heavily. In this scenario, the price may drop to the $18,500 level.

Technical indicators:

The MACD is now in the bullish zone and growing faster.

The RSI for BTC/USD is now above the 50 level.

The key support levels are $20,000 and $19,800.

The following are the major resistance levels: $20,500, $20,950 and $21,650.