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


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

  • Bitcoin remained in bearish territory and extended its 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 the short-term downtrend line with resistance near $22,850 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair must get rid of the $23,100 resistance to start a steady increase in the near term.

Bitcoin price faces resistance

Bitcoin price started a new low After it faced sellers near the $23.570 level. The price gained bearish momentum after it broke through the $23,000 support area.

It even traded below the $22,800 level and the 100 hourly simple moving average. Finally, there was a rally below the $22,650 level. However, the downside was limited and the price was trading as low as $22,400. The price started a new recovery wave above the $22,800 resistance area.

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

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

Bitcoin price

Source: BTCUSD on TradingView.com

The 50% Fib retracement level of the downside move from the $23,570 high to $22,400 is also near the $23,000 area. The next major resistance is near the $23,300 area. A close above the $23,500 resistance area could start a steady increase. In the mentioned case, the price may rise to surpass the $23,500 resistance.

More losses in bitcoin?

If Bitcoin fails to break above the $23,000 resistance area and the 100 hourly SMA, it may continue to move lower. There is immediate support on the downside near the $22,800 level.

The next major support is now near the $22,400 level. A close below $22,400 may start a move towards $22,000. Any further losses could send the price towards the $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.

Key support levels – $22,800, followed by $22,400.

The main resistance levels are $23,000, $23,300 and $24,500.



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