Bitcoin price against the US Dollar (BTC/USD) has dropped below the pivot level at US$33,000 and followed a bearish pattern. It went on to correct below the support zone at US$32,000 level and the 100 hourly SMA (Simple Moving Average). The pair is currently holding the major support level at US$31,000 with the recent low formed around US$31,154. A recent break above the resistance level at US$31,500 has been recorded. At press time, the BTC price is trading around US$31,633.59.
The hourly chart of the bitcoin price against the US Dollar shows that the BTC/USD pair has climbed above the 23.6% Fibonacci retracement level of the recent decline from the swing high at US$32,450 to a low at US$31,154.
On the upside, the immediate resistance level has formed near the US$31,800 level and 100 hourly SMA. Interestingly, the 50% Fibonacci retracement level of the recent decline from the swing high at US$32,450 to a low at US$31,154 is also located around the US$31,800 level.
On the hourly chart of the BTC/USD, near the US$31,850 level, a major bearish trend line is forming. You may see a decent recovery above the US$32,000 level only if the BTC price closes above the trend line resistance. The BTC price could rally towards the US$33,000 level if the BTC/USD pair closes above the US$32,000 level.
However, there is a high chance of more losses if the bitcoin price against the US Dollar fails to recover above the major resistance at US$31,800 and US$32,000. If the BTC/USD pair slips down from the current price at US$31,633.59, then the initial support level is at US$31,200, followed by major support near the US$31,000 zone. If the major support level at US$31,000 is also broken below, then it could trigger a steep decline. In that case, there are high chances for the bitcoin price to trade below the US$30,000 level.
JPMorgan has said that the price could fall to the US$20,000-25,000 zone. Benjamin Cowen, the Founder and CEO at BC Analytics, said:
“We could be experiencing some bearish times for 3-6 months… At $20k Bitcoin, if we were to come back to twenty thousand dollars, I can say in that scenario, I would start to get a lot more bullish.”
He believes that if the price of BTC reclaims the 20 week SMA, there is a high chance for it to skyrocket to a price zone of around US$100,000 by the end of 2021.
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