Bitcoin Breaks Key Support Of $19,000 As Bulls Sweats, What Is Next?
The price of Bitcoin (BTC) showed indecision for weeks as the price moved in a range for weeks between $19,500-$20,000, with the price stalling on the next movement. Despite so many expectations of the price having a short squeeze to a range of $21,600 before Bitcoin (BTC) next moves down, this wasn’t the case as the price broke below key support of $19,000. (Data from Binance)
The price of BTC has had difficulty replicating its bullish move that has created euphoria in recent months, with the price dwindling with every passing week. BTC’s price after touching its previous all-time high of $19,000, many expected a bounce off the price to new highs to form support, but the price has continued to retest this support zone of $19,000, making it weaker to hold off sell orders.
BTC price needs to bounce from the current price of $18,800 to reclaim the region of $19,100 for a relief rally to be possible; if the BTC price fails to reclaim the $19,100 region, we could see the price going lower, which would not be good for bulls and the state of the crypto market.
If the BTC price maintains this bearish structure, we could see the price of BTC retesting monthly lows.
Weekly resistance for the price of BTC – $20,600.
Weekly support for the price of BTC – $18,500 -$17,500
Price Analysis Of BTC On The Daily (1D) Chart
After retesting the daily low, the price of BTC bounced but could not trend higher as the price was followed by more bearish signs indicating exhaustion. The price of BTC failed to hold its key support found at $19,000, also acting as the previous all-time high; if the price of BTC fails to reclaim its daily support of $19,000, we could see the price of BTC retesting lower regions.
The price of BTC has continued to show more bearish momentum indicating more sell orders have been placed. BTC price has continued to fall in a wedge as price needs to break out for a relief bounce to a region of $19,500, acting as daily resistance for BTC price.
The price of BTC is trading at $18,900 below its 50 and 200 Exponential Moving Averages (EMA) on the daily timeframe. The prices at $21,600 and $29,000 correspond to the 50 and 200 EMA acting as resistance to BTC price.
Daily (1D) resistance for the BTC price – $20,500-$21,600.
Daily (1D) support for the BTC price – $18,500-$17,500.
BTC Price Analysis On The Four-Hourly (4H) Chart
The price of BTC in the 4H timeframe continues to look bearish but with a glimpse of hope as the price has formed a bullish divergence with price ready to retest $19,700 as price trades below the 50 and 200 EMA acting as resistance.
The price of BTC needs to build more momentum as the price aims to retest $19,700, which corresponds with the 50 EMA price.
The price at $19,700 corresponds with the 61.8% value on the Fibonacci retracement.
On the 4H chart, the Relative Strength Index (RSI) for BTC is below 35, indicating more sell order volume for the BTC price.
Four-Hourly (1H) resistance for the BTC price – $19,700-$21,600.
Four-Hourly (1H) support for the BTC price – $18,500-$17,500.