Bitcoin Price Starts Constructive Correction, Why BTC Could Drop Further

Bitcoin price traded to a new monthly high at $21,469 before it started a downside correction. BTC could drop towards $20,600 before it starts a fresh increase. Bitcoin gained pace above the $21,000 resistance zone before it faced sellers. The price is trading above $20,500 and the 100 hourly simple moving average. There is a key bearish trend line forming with resistance near $21,150 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair could a fresh increase if it clears the $21,150 and $21,400 resistance levels. Bitcoin Price Corrects Lower Bitcoin price remained well bid above the $20,600 and $20,500 levels. BTC gained pace for a move above the $21,000 resistance zone and a close above the 100 hourly simple moving average. The price even moved above the $21,200 level. A high was formed near $21,469 before the bulls lost control. Recently, there was a downside correction below the $21,200 level. The price declined below the 23.6% Fib retracement level of the upward move from the $20,050 swing low to $21,469 high. However, the bulls were active near the $20,900 zone and the 100 hourly simple moving average. Bitcoin price is now trading above $20,500 and the 100 hourly simple moving average. On the upside, an immediate resistance is near the $21,050 level. The first major resistance is near the $21,150 level. There is also a key bearish trend line forming with resistance near $21,150 on the hourly chart of...