Bitcoin Price Could Narrowly Avoid a Major Downtrend, Here’s How

Bitcoin extended losses below the $22,650 support against the US Dollar. BTC is attempting another recovery and might face hurdles near $23,100.

  • Bitcoin remained in a bearish zone and extended losses below the $23,500 level.
  • The price is now trading below the $23,000 level and the 100 hourly simple moving average.
  • There was a break above a short-term bearish trend line with resistance near $22,850 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair must clear the $23,100 resistance to start a steady increase in the near term.

Bitcoin Price Faces Resistance

Bitcoin price started a fresh decline after it faced sellers near the $23,570 level. The price gained bearish momentum after it broke the $23,000 support zone.

It even traded below the $22,800 level and the 100 hourly simple moving average. Finally, there was a spike below the $22,650 level. However, downsides were limited and the price traded as low as $22,400. The price started a fresh recovery wave above the $22,800 resistance zone.

Bitcoin cleared the 23.6% Fib retracement level of the downward move from the $23,570 swing high to $22,400 low. Besides, there was a break above a short-term bearish trend line with resistance near $22,850 on the hourly chart of the BTC/USD pair.

It is now trading below the $23,000 level and the 100 hourly simple moving average. On the upside, bitcoin price is facing resistance near the $23,000 level and the 100 hourly SMA.

Source: BTCUSD on TradingView.com

The 50% Fib retracement level of the downward move from the $23,570 swing high to $22,400 low is also near the $23,000 zone. The next key resistance is near the $23,300 zone. A close above the $23,500 resistance zone could start a steady increase. In the stated case, the price may perhaps rise clear the $23,500 resistance.

More Losses in BTC?

If bitcoin fails to clear the $23,000 resistance zone and the 100 hourly SMA, it could continue to move down. An immediate support on the downside is near the $22,800 level.

The next major support now sits near the $22,400 level. A close below the $22,400 level might start a move towards $22,000. Any more losses might send the price towards $21,200 level.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.

Major Support Levels – $22,800, followed by $22,400.

Major Resistance Levels – $23,000, $23,300 and $24,500.

This news is republished from another source. You can check the original article here

Be the first to comment

Leave a Reply

Your email address will not be published.


*