Bitcoin has started a new decline from the $23,000 resistance level against the US Dollar. BTC is dropping and is still at risk of a sharp drop below $21,800.
- Bitcoin started a bearish 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 the major 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.
Bitcoin price starts a new decline
Bitcoin price attempted a clear move above $24,000 resistance area. However, the bears appeared near the $23,800 area. The last swing high formed near $23.744 before there was a new low.
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 area. The price rose above the 23.6% Fib retracement level of the downside move from $22.744 to the $21,950 swing high.
However, the price faced sellers near the $23,000 area and Simple moving average per 100 hours. The price failed near the 50% Fib retracement level of the downside move from $22,744 to the $21,950 swing high.
It is now moving below $22,000. There was a break below the major uptrend line with support near $22,700 on the hourly chart of the BTC/USD pair. It is now approaching the major support level near the $21,800 level. On the upside, bitcoin price could face resistance near the $22,200 level.
Source: BTCUSD on TradingView.com
The next major resistance is near the $22,500 region. A close above the $22,500 resistance area could set the pace for further gains. In the mentioned case, the price may rise towards the $23,000 level. The next major resistance is near the $24,000 level.
Broken downside in bitcoin?
If Bitcoin fails to stay above the support level at $21,800, it may continue to decline. There is immediate support on the downside near the $21,600 level.
The next major support is now near the $21,500 level. A clear breakout and close below the $21,500 support area could send the price towards $20,500 in the near term, or even $20,000.
Hourly MACD – The MACD is now gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is well below the 50 level.
Key support levels – $21,600, followed by $21,500.
The key resistance levels are $22,200, $22,500 and $23,000.