Bitcoin (BTC) Turns Red; Why It Might Extend Downside

  • Bitcoin resorted to declines after losing the $22K mark.
  • BTC is trading beneath the $22K mark and the 100hr SMA.
  • The 1-hr chart shows a massive bearish line emerging with a $21,950 resistance (Kraken data).
  • A decisive move beneath $20.8K might welcome further declines.

Bitcoin kick-started a new drop beneath the support at $22K. The bellwether crypto turned red and might stretch lower under the foothold at $20.5K.

BTC Gains Bearish Pressure

Bitcoin price declined after failure to overcome the resistance at $24K. The bellwether crypto noted steady plunges beneath the $23.5K and $23K zones. That attracted bears as they dragged Bitcoin beneath the support floor at $22.5K and 100hr Simple Moving Average. Lastly, the price hovered beneath $21.5K before dropping to $21K. Bitcoin printed a low of around $20,994 and now consolidates losses.

Bitcoin’s immediate resistance stands around the $22,000 territory. Moreover, BTC/USD 1hr chart shows a massive bearish line emerging with resistance at $21,950. The trend-line sits near 76.4% Fibonacci retracement of the latest slump from $22,250 to $20,994.

A closing beyond the resistance level of $22K might set the momentum for further gains. That would see the world’s leading crypto climbing to $22.5K. Another massive resistance would showcase at $23,000. However, that could be easier said than achieved.

Further BTC Declines?

Bitcoin might extend its downward tendencies if it fails to trigger recovery waves beyond the $21,650 value area. The immediate support barrier to the downside stands at $21,000. While publishing this post, Bitcoin traded weakly at $21,147. The crypto seems primed to surrender this level in the coming sessions.

Moving beneath $21K would see Bitcoin discovering another foothold at $20,500. A decisive breach and closing beneath this level might welcome declines to $20K in the short term.

Bears returned to the crypto market over the weekend and stretched their actions into this week. The cumulative value of all digital assets lost the crucial $1T level, changing hands with a 3.77% 24hr loss at $968.9 billion. The market’s road with fewer hurdles is the downside.

Stay tuned for the latest news in the cryptocurrency industry.