Bitcoin Price Takes Hit, Why BTC Remains at Risk of More Losses


Bitcoin price started a new decline from the $24,250 resistance area against the US Dollar. BTC has dropped below $23,000 and is still at risk of further losses.

  • Bitcoin started a new decline below the $23,500 support area.
  • The price is now trading below the $23,500 level and the 100 hourly simple moving average.
  • There was a break below the major uptrend line with support near $23,320 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair should get rid of the $23,250 resistance to start a new increase in the near term.

Bitcoin price breaks support

Bitcoin price struggled to rise above $24,000 resistance area. The price made a top near $24,285 and started a new low.

There was a clear move below the $23,800 and $23,500 support levels. The bears pushed the pair below the 61.8% Fibonacci retracement level of the upward move from the swing low $22,846 to the $24286 high. Besides, there was a break below the major uptrend line with support near $23,320 on the hourly chart of the BTC/USD pair.

Bitcoin price is now trading below $23,500 and Simple moving average per 100 hours. It is now consolidating above the key $22,650 support area.

Bitcoin price

Source: BTCUSD on TradingView.com

On the upside, there is an immediate resistance near the $23,250 level. The next major resistance is near the $23,500 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 $24,000 resistance.

Broken downside in bitcoin?

If Bitcoin fails to clear the $23,500 resistance area, it may continue to move lower. There is immediate support on the downside near the $22,650 level.

The next major support is now near the $22,500 level. A close below $22,500 may start a move towards $22,000. If the bears continue to operate, there is a risk of a move towards the $21,500 level in the upcoming sessions. Any further losses could send the price towards the $20,500 level.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well below the 50 level.

Key support levels – $22,650, followed by $22,500.

The main resistance levels are $23,250, $23,500 and $24,000.



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