TA: Bitcoin Drops 20%, Why The Bulls Must Protect $20K

Bitcoin extended its decline below the $25,000 support against the US Dollar. BTC is down 20% and approaching the key $20,000 support zone. Bitcoin extended its decline below the $23,500 and $22,500 support levels. The price is now trading below the $25,000 level and the 100 hourly simple moving average. There is a connecting bearish trend line forming with resistance near $22,100 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair must stay above the key $20,000 support zone to avoid more downsides. Bitcoin Price Nosedives Bitcoin price failed to start a recovery wave and extended decline below the $25,000 support zone. The bears gained strength for a move below the $23,500 support zone. The price declined over 20% and even traded below the $22,000 support zone. A new multi-week low is formed near $20,824 and the price is still trading in a strong downtrend. There was a close below the $22,000 level and the 100 hourly simple moving average. Bitcoin is now consolidating near the $21,000 level. An immediate resistance on the upside is near the $21,800 level. The first major resistance is near the $22,000 level. There is also a connecting bearish trend line forming with resistance near $22,100 on the hourly chart of the BTC/USD pair. It is near the 23.6% Fib retracement level of the recent drop from the $28,300 swing high to $20,824 low. Source: BTCUSD on TradingView.com If there is a clear move above the t...