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Bitcoin Price Is Facing Uphill Task, $20K Is The Key

Aayush Jindal

Aayush Jindal

Key Highlights

  • Bitcoin price is facing a major resistance near $19,400 and $20,000.
  • A major bearish trend line is in place with resistance near $19,400 on the 4-hours chart.
  • A close above $20,000 might start a strong increase.
  • The main breakdown support sits near the $18,500 zone.

 

Bitcoin Price Technical Analysis

Bitcoin price remained in a bearish zone below the $20,000 level against the US dollar. BTC/USD made a few attempts to gain strength above $19,500 but failed.

Looking at the 4-hours chart, the pair started a fresh decline from the $19,920 swing high. The price declined below the $19,500 level. It settled below the $19,500 level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).

On the upside, the price is facing a significant resistance at $19,400. There is also a major bearish trend line in place with resistance near $19,400 on the same chart.

The main resistance sits near the $20,000 level. A close above the $20,000 level may perhaps start a steady increase in the coming days. In the stated case, the price could rise towards the $21,000 level. Any more gains could set the pace for a move towards the $22,500 level.

On the downside, an initial support sits near the $18,800 level. The main breakdown support sits near the $18,500 zone. If there is a downside break, bitcoin might decline towards the $17,500 support in the coming sessions.

The overall price action and chart suggest that bitcoin price is facing an uphill task near $19,400 and $20,000, above which it could start a strong increase.

Economic Releases

  • US Initial Jobless Claims - Forecast 230K, versus 228K previous.
  • US Existing Home Sales for Sep 2022 (MoM) - Forecast -0.1%, versus -0.4% previous.