Bitcoin started a downward correction from the $24,000 resistance against the US Dollar. BTC finds offers near $22,500 and could start a new increase.
- 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 key bearish trendline with resistance near $22,750 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair might continue higher if it stays above $22,500 and the 100 hourly SMA.
Bitcoin price remains supported
The price of Bitcoin accelerated and exceeded the $24,000 resistance zone. However, the bears appeared near $24,250. A high was formed near $24,264 and the price began a downward correction.
There was a move below the $24,000 and $23,500 levels. The price fell below the 38.2% Fib retracement level of the upward move from the low of $20,769 to the high of $24,264. Additionally, there was a spike below the $23,000 level.
Bitcoin found support near the $22,500 area and the 100 hour simple moving average. It started a decent upward move and climbed above $23,000.
There was a break above a key 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 the $23,440 level. The next key resistance is near the $23,880 area.
Source: BTCUSD on TradingView.com
A close above the $23,880 resistance zone could set the stage for more gains. In the indicated case, the price could possibly rise towards the $24,250 level. The next major resistance is seen near the $25,000 level.
Downside break in BTC?
If bitcoin fails to clear the $23,880 resistance zone, it could trigger a downward correction. Immediate support on the downside is near the $22,750 level and the 100 hourly SMA.
The next major support now lies near the $22,500 level. A clear break and close below the $22,500 support zone could send the price towards near-term $21,450 or even $21,000.
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.
Main support levels – $22,750, followed by $22,500.
Main resistance levels – $23,440, $23,880 and $24,250.