Bitcoin started a fresh decline from the $23,000 resistance against the US Dollar. BTC is down and remains at risk of a sharp decline below $21,800.
- Bitcoin started a downside correction and traded below the $22,200 level.
- The price is now trading below the $22,500 level and the 100 hourly simple moving average.
- There was a break below a key uptrend line with support near $22,700 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could drop sharply if there is a clear move below the $21,450 level.
The price of Bitcoin begins a new decline
Bitcoin price attempted a clear move above the $24,000 resistance zone. However, the bears appeared near the $23,800 area. The last swing high formed near $23,744 before there was further decline.
The price broke below the $22,500 support level and the 100 hourly simple moving average. However, the bulls were active near the $21,950 area. Recently, there was an upward correction above the $22,200 resistance zone. The price climbed above the 23.6% Fib retracement level of the downward move from the $22,744 high to $21,950 low.
However, the price was facing sellers near the $23,000 area and the 100 hour simple moving average. The price failed near the 50% Fib retracement level of the downward move from the $22,744 high to $21,950 high.
It is now dropping below $22,000. There was a break below a key uptrend line with support near $22,700 on the hourly chart of the BTC/USD pair. It is now approaching key support near $21,800. On the upside, bitcoin price may face resistance near the $22,200 level.
Source: BTCUSD on TradingView.com
The next key resistance is near the $22,500 area. A close above the $22,500 resistance zone could set the tone for more gains. In the indicated case, the price could possibly rise towards the $23,000 level. The next major resistance is seen near the $24,000 level.
Downside break in BTC?
If bitcoin fails to stay above the $21,800 support, it could continue falling. An immediate support on the downside is near the $21,600 level.
The next major support now lies near the $21,500 level. A clear break and close below the $21,500 support zone could send the price towards $20,500 in the near term, or even $20,000.
Hourly MACD – The MACD is now accelerating into the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is well below the 50 level.
Main support levels – $21,600, followed by $21,500.
Main resistance levels – $22,200, $22,500 and $23,000.