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.
