Bitcoin price attempted a recovery wave above the $20,300 resistance level. However, there was no upside break and the price remained in a bearish zone below $20,500.
Recently, Ethereum saw a major bearish reaction below the $1,500 support. As a result, BTC also moved a few points lower and declined below the $20,000 support. It even traded below the $19,600 and tested the $19,500 support zone.
A low is formed near $19,509 and the price is now consolidating losses. Bitcoin price is now trading below $20,200 and the 100 hourly simple moving average.
On the upside, an immediate resistance is near the $20,000 level. There is also a major bearish trend line forming with resistance near $20,050 on the hourly chart of the BTC/USDT pair. Besides, the 23.6% Fib retracement level of the main decline from the $22,790 swing high to $19,509 low is just above the trend line.
The next major resistance sits near the $21,000 level and the 100 hourly simple moving average. It coincides with the 50% Fib retracement level of the main decline from the $22,790 swing high to $19,509 low.
A close above the $21,000 resistance might start a fresh increase. In the stated case, the price may perhaps rise towards $21,400. Any more gains might send the price towards the $22,000 resistance zone.
If bitcoin fails to start a recovery wave above the $20,000 resistance zone, it could continue to move down. An immediate support on the downside is near the $19,500 zone.
The next major support is near the $19,200 levels. A clear move below the $19,500 and $19,200 levels might open the doors for a move towards the $18,500 level.
Before the Merge, the price target from Ethereum had been $2,000, given the upward momentum that was recorded during that time. However, the dip in price has put the digital asset in an especially difficult position.
With the price dropping to the $1,590 territory, the cryptocurrency is unable to properly clear important technical levels like the 50-day moving average. Additionally, the 100-day moving average looks worse. This spells the likelihood of more bearish movement over the next week.
The sell-offs have also not eased over the last couple of weeks. Ethereum had recorded massive exchange inflows leading up to the Merge, bringing the 7-day inflow volume to $11.52 billion. This large inflow volume, coupled with the decline below the 50-day moving average, has caused the 50-day MACD to skew heavily towards the selling pressure.
The next major support level for the digital asset now lies at $1,500. However, a failure to properly hold this level will likely see Ethereum test the $1,300 territory once more.
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