• Tue. May 28th, 2024

Bitcoin (BTC) Stuck in Range; Why It Can Still Breakdown

Erik Taylor

ByErik Taylor

Sep 5, 2022
  • Bitcoin remains stuck around the $20K mark, changing bands beneath the resistance of $20.5K.
  • Bearishness has BTC hovering beneath $20K and 100hourly SMA.
  • The 1-hour chart shows a near-term climbing channel with support at $19,750.
  • A clear move under $19.6K and $19.5K might see Bitcoin accelerating lower.

BTC Still in a Range

Bitcoin had its price action inside a range below the resistance zones of $20.5K and $20,550. The leading alt has failed (on multiple occasions) to overcome the $20.5K hurdle. Nevertheless, bulls remained active beyond the support of $19.5K.

The asset printed its latest low around $19.6K, and the price sees a range-bound upside. That welcomed a minor surge past the resistance at $19,750. Moreover, the price surged past the 23.6% Fibonacci retracement of the latest fall from $20,397 to $19.6K.

While writing these lines, BTC traded under $20K and 100hourly Simple Moving Average. Also, BTC/USD 1hr chart shows a near-term rising channel emerging with support of around $19,900.

The immediate resistance stands at $20K. The obstacle stands near the 50% Fibonacci retracement zone of the latest flip to $19.6K from $20,397.

A clear move past 20K resistance could push Bitcoin to $20.5K. Further upside could welcome stable moves toward the resistance zone at $21.2K.

BTC’s Downside Break?

Bitcoin remains susceptible to more downsides. Failure to overcome the resistance at $20.5K would trigger downtrends for the world’s largest crypto. The nearest support stands around the $19,750 value area.

Bitcoin would secure additional footing at $19.6K. Meanwhile, the primary support stands at $19.5K. Bitcoin should steady at this mark to prevent sharp plunges to $18.8K. Failure to do that will push towards $18.5K in the short term.

The crypto spectrum remains in bear hands. The market has remained red within the past few sessions, threatening more plunges.

Also, the broad financial space supports downsides for the asset class. You probably know how the global economy has deteriorated recently. Such an environment would support BTC’s drop.

Technical Indicators

  • Support zones: $19,750 and $19,500.
  • Resistance zones: $20K, $20,350, and $20.5K.
  • Hourly MACD weakens within the bullish area.
  • Hourly RSI stays beyond 50
Erik Taylor

Erik Taylor

Erik Taylor, contributing author for Big Trends Signals, leverages his vast online trading knowledge to provide thorough guides and impartial reviews, simplifying complex trading concepts for readers.

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