Bitcoin started a downside correction with the $24,000 resistance against the US Dollar. BTC is receiving bids near $22,500 and may start a fresh rise.
- Bitcoin started a downside correction and traded below the $23,000 level.
- The price is now trading above the $22,000 level and testing the 100 hourly simple moving average.
- There was a break above a major bearish trend line with resistance near $22,750 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is likely to continue rising if it sustains above $22,500 and the 100 hourly SMA.
bitcoin price remains supported
Bitcoin price turned bullish and climbed above the $24,000 resistance area. However, bears appeared near $24,250. A high was formed near $24,264 and the price started a decline.
There is a move below the $24,000 and $23,500 levels. The price declined from the 38.2% Fib retracement level of the $20,769 low to $24,264 high. Besides, there was a rise below the $23,000 level.
Bitcoin found support near the $22,500 area and the 100 hourly simple moving average. It started a nice upward move and climbed above $23,000.
There was a break above a major bearish trend line with resistance near $22,750 on the hourly chart of the BTC/USD pair. On the upside, bitcoin price may face resistance near $23,440. The next major resistance is near the $23,880 area.
Source: BTCUSD on TradingView.com
Another upside move above the $23,880 resistance area could set the tone. In the specified case, the price is likely to move higher towards the $24,250 level. The next major resistance is near the $25,000 level.
Downside Break in BTC?
If bitcoin fails to clear the $23,880 resistance area, it could initiate a downside correction. On the downside, immediate support is near the $22,750 level and the 100 hourly SMA.
The next major support is now near the $22,500 level. A clear break and close below the $22,500 support area could send the price towards $21,450 or $21,000 in the near term.
Technical Indicators:
Hourly MACD – The MACD is now losing momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is still above the 50 level.
Key Support Level – $22,750, followed by $22,500.
Major resistance levels – $23,440, $23,880 and $24,250.