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Bitcoin Price Grinds Lower But The Key Breakdown Support Is Still Intact

Byharjotsinghjaspal

Oct 20, 2022
Bitcoin
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Bitcoin price slowly moved lower below $19,200 against the US Dollar. BTC is still trading above the main breakdown support near the $18,500 zone.

  • Bitcoin is slowly moving lower and there was a spike below the $19,000 level.
  • The price is trading below $19,200 and the 100 hourly simple moving average.
  • There is a key bearish trend line forming with resistance near $19,180 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could start a steady increase if there is a clear move above $19,200 and then $19,500.

Bitcoin Price Holds Support

Bitcoin price started a slow decline from just above the $19,500 resistance zone. BTC declined below the $19,250 and $19,200 support levels to move into a short-term bearish zone.

The bears even pushed the price below the $19,000 level and there was a close below the 100 hourly simple moving average. The price traded as low as $18,900 and is currently correcting higher. There was a move above the $19,000 level.

Bitcoin price is now trading below $19,200 and the 100 hourly simple moving average. There is also a key bearish trend line forming with resistance near $19,180 on the hourly chart of the BTC/USD pair.

On the upside, an immediate resistance is near the $19,090 level. It is close to the 23.6% Fib retracement level of the recent decline from the $19,697 swing high to $18,900 low. The first major resistance sits near the $19,200 level and the trend line.

Source: BTCUSD on TradingView.com

The next major resistance might be $19,300 or the 50% Fib retracement level of the recent decline from the $19,697 swing high to $18,900 low. A clear move above the $19,300 resistance might start a decent increase. In the stated case, the price may perhaps test the $19,500 resistance. Any more gains might start a steady increase towards the $20,000 resistance zone.

Downside Break in BTC?

If bitcoin fails to rise above the $19,300 resistance zone, it could continue to move down. An immediate support on the downside is near the $19,000 zone.

The next major support is near the $18,900 zone. A downside break could send the price towards the main breakdown support at $18,500. Any more losses might send the price further lower towards $17,800 and selling pressure could increase.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

Major Support Levels – $19,000, followed by $18,900.

Major Resistance Levels – $19,200, $19,300 and $19,500.



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