Bitcoin price started a downward correction below $23,000. BTC is testing strong support and could start a further rise towards $23,500.
- Bitcoin began a downward correction and fell below the $23,000 support zone.
- The price is trading below $23,000 and the 100 hourly simple moving average.
- A major bullish trend line is forming with support near $22,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair might start a fresh rise if it stays above the $22,000 support zone.
Bitcoin price testing key support
bitcoin price struggled to clear the $23,400 and $23,500 resistance levels. BTC started a downside correction and traded below the $23,000 support zone.
The price fell below the 23.6% Fib retracement level of the key increase from the low of $20,395 to the high of $24,250. The price even climbed below the $22,500 support level. However, the bulls appeared near the $22,200 support zone.
A major bullish trend line is also forming with support near $22,400 on the hourly chart of the BTC/USD pair. Bitcoin price is now trading below $23,000 and the 100 hourly simple moving average.
An immediate resistance is near the $22,700 level. The next major resistance is near the $22,850 area or the 100 hourly simple moving average, above which the the price could take a bullish momentum. In the indicated case, the price could possibly rise towards the $23,200 level.
Source: BTCUSD on TradingView.com
The next resistance might be near the $23,500 level. Any further gains could send the btc price towards the $24,200 level.
More losses in BTC?
If bitcoin price remains above the trendline support or $22,200, it could continue to decline. Immediate support on the downside is seen near the $22,000 area.
The next major support is near the $21,900 area or the 50% Fib retracement level of the key swing low increase from $20,395 high to $24,250 high. A break down below the $21,900 level could send the price towards the $21,200 level. Any further losses could push the price up to $20,500 in the short 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 now below the 50 level.
Main support levels – $22,100, followed by $22,000.
Main resistance levels – $22,700, $22,850 and $23,200.
