Bitcoin Price Lacks Momentum, Why BTC Could Drop 5%

Bitcoin has struggled to rise above $24,000 against the US Dollar. BTC’s decline is likely to continue and could fall towards $22,000.

  • Bitcoin’s bearish sign is below $23,500
  • The current price of the stock is trading at below the $23,200 mark and the 100 hourly simple moving mean.
  • On the hourly chart for the BTC/USD pair, there is a significant bearish trend line with resistance at $23,250 (data feed Kraken).
  • This pair may continue their slide, and could even challenge the $22,000 support.

Bitcoin Price Signals Decline

From well over the $24,000 resistance zone, Bitcoin prices began to fall steadily. To move into a bearish short-term zone, the price fell below $23,500 and $23,250.

It fell below the 100-hourly simple moving average. Even the 50% Fib level of the pivotal increase from the $20.695 swing low and $24,671 peak was tested. Now, the price has fallen below $23,200 and the 100-hourly simple moving average.

A major bearish trendline is also visible on the hourly charts of BTC/USD pairs. It forms resistance around $23,250. It seems that the support zone of $22,680 is being protected by the bulls.

The bitcoin price has been facing support near the trendline and at $23,250. Near the $23,520 area and the 100 hourly simplemoving average is the next major resistance.

Bitcoin Price

Source: BTCUSD from TradingView.com

Near the $24,180 resistance zone could be the main resistance. The pace of a substantial increase could be set if the resistance zone is close to $24,180. The price could rise to $24,650 in this scenario. Next comes resistance at the $25,000 point.

BTC Losses:

Bitcoin could move lower if it fails to break the trend line and $23,250 resistance zones. Support for the downside lies near $22,680.

Near the $22,210 mark is now the next significant support. The Fib level at 61.8% is the key support for the increase in price from $20,695 low to $24,671 high. A further loss could push the price to the $22,000 mark.

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 below the 50 level.

Major Support Levels – $22,680, followed by $22,210.

Major Resistance Levels – $23,250, $23,520 and $24,180.

Get more Crypto News at CFX Magazine