Bitcoin price remained in a bearish zone below the $21,000 level. There was a short-term recovery wave, but the bears were active near the $20,300 and $20,350 levels.
The price started a fresh decline and traded below the $20,000 level. It even broke the recent swing low and traded to a new weekly low at $19,619. The price is now trading below $20,750 and the 100 hourly simple moving average.
There is also a key bearish trend line forming with resistance near $20,250 on the hourly chart of the BTC/USDT pair. On the upside, an immediate resistance is near the $20,300 level. It is near the 23.6% Fib retracement level of the key drop from the $22,790 swing high to $19,619 low.
A clear move above the trend line and $20,300 might send the price towards the $20,750 resistance. The next major resistance sits near the $21,200 level. It coincides with the 50% Fib retracement level of the key drop from the $22,790 swing high to $19,619 low.
A close above the $21,200 resistance might start a fresh increase. In the stated case, the price may perhaps rise towards $22,000. Any more gains might send the price towards the $22,450 resistance zone.
If bitcoin fails to clear the $20,300 resistance zone, it could continue to move down. An immediate support on the downside is near the $20,000 zone.
The next major support is near the $19,600 and $19,500 levels. A downside break below the $19,500 level might send the price towards the $18,500 support.
The price was headed towards the overhead resistance area found between $1,800 and $2,000 yesterday. This all changed when the Bureau of Labor Statistics announced the CPI numbers, sending the entire market lower. This marked yet another unsuccessful attempt to push the price above this important zone.
The volatility levels have also picked up while the price is within the cloud. From a technical perspective, the bottom and the top of the cloud usually represent the support and resistance levels.
The bulls must form a higher high — something they have failed to achieve thus far — if they are to maintain the bullish structure. If they are unable to do so, this would put the entire recent trend in jeopardy. However, it is likely that these efforts will continue, so long as the price remains above $1,500.
In case investors start booking profits after the Merge, the structure could be rendered meaningless and push the market into bearish territory.
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