Bitcoin is up nearly 10% and has broken the $22,000 resistance area against the US Dollar. BTC could correct lower, but the bulls may be active near $21,250.
- Bitcoin jumped and broke a huge hurdle near the $22,000 area.
- The price is now trading above the $21,500 level and the 100 hourly simple moving average.
- There was a break above a major ascending channel with resistance near $21,125 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could correct lower, but the bulls may be able to protect the $21,250 support.
Bitcoin price starts a new boom
Bitcoin price formed a base above the $20,000 level. BTC file started strong increase By clearing the $20,500 and $20,800 resistance levels.
There was a sharp increase and the price rose above the $21,500 level. It even broke the $22,000 barrier and settled above Simple moving average per 100 hours. A top formed near $22,498 and the price is now consolidating gains.
It is trading well above the 23.6% Fib retracement level of the recent increase from the $19,750 swing low to $22,498. On the upside, the price is facing resistance near the $22.450 and $22,500 levels.
Source: BTCUSD on TradingView.com
The next major resistance is near the $22,800 area. A close above the $22,800 resistance area could set the pace for a test of the $23,200 level. Any further gains could open the door for an increase towards the $24,000 level. The next major resistance is near the $25,000 level.
Supporting Bitcoin dips?
If Bitcoin fails to clear the $22,500 resistance area, it may start a downside correction. There is immediate support on the downside near the $21,850 level.
The next major support is now near the $21,250 level or the broken channel trendline area. It is close to the 50% Fib retracement level of the recent increase from the $19,750 swing low to $22,498 high. A close below the $21,250 support area could push the price to $20,500. In the mentioned case, there is a risk of a move towards the $20,000 level.
Hourly MACD The MACD is now losing momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for Bitcoin/USD is now in the overbought territory.
Key support levels – $21,850, followed by $21,250.
The key resistance levels are $22,500, $22,800 and $23,200.