Key Takeaways:
- Bitcoin price is struggling below the $20,000 resistance zone.
- BTC/USD is trading in a major contracting triangle with resistance at $19,500 on the 4-hours chart.
- The price could gain bullish momentum if it clears the $19,500 and $20,000 resistance levels.
Bitcoin price remains in a bearish zone below $20,000. BTC/USD must stay above the $18,500 support to avoid a major downside break.
Bitcoin Price Stuck In A Range
This past week, bitcoin price failed to gain pace above the $20,000 resistance zone. The BTC/USD pair started a slow and steady decline below the $19,500 level.
There was drop below the $19,200 support level and the 50 simple moving average (4-hours, blue). Altcoins such as ethereum, cardano, and BNB also saw bearish moves. However, XRP price remained strong and there was also a rally above the $0.50 resistance.
Bitcoin 4-hours chart | Source: BTCUSD on TradingView.com
It seems like BTC is forming a base above the $19,000 level. The recent low was formed near $18,943 and the price is now consolidating losses.
On the upside, an immediate resistance is near the $19,260 level and the 50 simple moving average (4-hours, blue). It is also near the 23.6% Fib retracement level of the downward move from the $20,181 swing high to $18,943 low.
There is also a major contracting triangle forming with resistance at $19,500 on the 4-hours chart. The main hurdle is forming near the $20,000 zone or the 61.8% Fib retracement level of the downward move from the $20,181 swing high to $18,943 low.
A clear move above the triangle resistance and a follow up move above the $20,000 barrier might open the doors for a fresh increase. The next key resistance might be near the $20,400 level, above which it might even test the $21,000 zone. Any more gains could set the pace for a test of the $22,600 resistance.
If there is no upside break, the price could drop below the triangle support at $19,000. The first major support is near the $18,500 level. A clear move below the $18,500 support could spark another sharp decline. In the stated case, the price may perhaps test the $17,000 support.
Overall, bitcoin price is still struggling below the $20,000 pivot zone. If the bears remain in action, the price may perhaps drop towards the $17,000 support. Conversely, the price might start a recovery wave and revisit the $22,500 resistance.
