Moving Away From the Target

The leading cryptocurrency asset on the market is continuing its gradual descent from the $21,000 resistance point. It trades at a price of $20,498 right now, which is lower than its 100-hour simple moving average. A significant downward channel is currently being formed, and the line at $20,700 is providing some resistance.

Bitcoin, on the other hand, continues to make efforts somewhat close to the $21,000 resistance level. Despite this, it has not been possible for it to collect any significant momentum in order to recover the position. In light of the recent price drop, traders face a fresh obstacle in the form of the barrier of resistance located above $21,000.

The most recent high level reached was 21,074 dollars, which is also the point at which the price began its current downward trend. There was, however, some movement over the $20,600 and $20,500 areas. This movement was quite minor.

The bearish sentiment surrounding Bitcoin was responsible for driving the price of the asset down below the 50% Fibonacci retracement point. After hitting a low of $20,029, it began an ascent that culminated at a price of $21.074.

Bitcoin is trading at a price that is lower than $20,500 right now, and it is also trading below the projected 100-hourly simple moving average. On the hourly chart for the BTC/USD pair, there is also a significant downward channel seen around the $20,700 price level.

The price is currently stable near the support level of $20,498, which is located close to the area where the 61.8% Fibonacci retracement begins. Additionally, it is on the upper side of the move that encompasses the low swing of $20,029 and the high swing of $21,074 respectively.

Future Possibilities

However, if the price continues to rise from here, the first point of resistance will be reached at $20,600. It will also be at the simple moving average calculated over 100 hours.

However, the significant opposition can be seen at $20,700 and the trend line of the channel. According to projections, the level of strong opposition that comes next will be close to $21,000. If there is a sustained increase that takes Bitcoin's price above $21,000, then it is possible that it will continue to go steadily toward $22,000.

Any further increase would put us in the position to consider $22,500 as a possibility. It is possible that this will prove to be an extremely difficult point of resistance to conquer.

It is possible that Bitcoin may continue to fall if it is unable to break through the resistance level of $20,700. The price of $20,450 represents the initial point of support on the road leading below.

Following that, the next significant line of support will be at the level of $20,200. At that moment, the price of Bitcoin would be looking at a range between $15,000 and $20,000. Any further violation of the $20,000 support level could trigger a precipitous drop in the value of the asset in the near term.