Bitcoin traded near $25,000 before correcting lower against the US Dollar. BTC must stay above the $23,500 support to start another rally.
- Bitcoin started a fresh increase above the $24,000 resistance area.
- The price is now trading above the $23,600 level and the 100 hourly simple moving average.
- There was a break below the major uptrend line with support near $24,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is now approaching a major support area near $23,600 and $23,500.
Bitcoin price corrects lower
Bitcoin price rose at a rapid pace after there was a clear movement above $24,000 resistance area. BTC broke the $24,200 level to move further into positive territory.
The price even rose above the $24,500 level and traded near the $25,000 level. A top formed near $24,900 and the price started a downside correction. There was a move below the $24,500 support level.
Besides, there was a break below the major uptrend line with support near $24,000 on the hourly chart of the BTC/USD pair. Bitcoin price even traded below the 23.6% Fib retracement level of the upward move from the swing low of $22,686 to the high of $24901.
However, the price is now trading above the $23,600 level and Simple moving average per 100 hours. On the upside, there is an immediate resistance near the $24,200 level.
Source: BTCUSD on TradingView.com
The next major resistance is near the $24,500 area. A close above the $24,500 resistance area could trigger another rally. In the mentioned case, the price may test the $25,000 resistance.
Dips Limited in BTC?
If Bitcoin fails to clear the $24,200 resistance area, it may continue to move lower. There is immediate support to the downside near the $23,800 level and the hourly 100 simple moving average.
It is near the 50% Fib retracement level of the upward move from the $22,686 swing low to the $2,491 high. The next major support is now near the $23,500 level. If the bears push the price below the $23,500 support level, there may be a move towards the $23,000 level. Any further losses could send the price towards the $22,500 level.
Hourly MACD – The MACD is now losing its momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Key support levels – $23,800, followed by $23,500.
The main resistance levels are $24,200, $24,500 and $25,000.