Bitcoin was close to $25,000 when it traded before falling against the US dollar. BTC needs to remain at or above the $23,500 level in order for another increase.
- Bitcoin saw a new increase of $24,000 above its resistance zone.
- The price traded above $23,600 and the simple 100-hour moving average.
- The hourly chart for the BTC/USD pair showed a breaking below a significant bullish trend line, with support close to $24,000 (data feed Kraken).
- This pair is approaching major support zones of near $23,600 or $23,500.
Bitcoin price corrects lower
Bitcoin’s price grew after it crossed the $24,000 barrier. BTC crossed the $24,200 mark to continue its climb into a positive zone.
It even reached the $24,500 mark and was trading close to $25,000 levels. The price reached a high of $24,900 before it began a downward correction. A move below $24,500 was the support level.
On the hourly chart for the BTC/USD pair, the price also broke below a significant bullish trend line that had support close to $24,000. Bitcoin’s price traded even below the 23.6% Fib Retracement level, which was the peak of the upward swing from the $22,686 low to the $24,901 high.
However, it is trading at or above $23,600 as well as the 100 hourly simple movement average. The upside is that the immediate resistance lies near the $24,200 mark.
Source: BTCUSD at TradingView.com
Next is the $24,500 resistance zone. An increase in the resistance level of $24,500 could trigger another rise. If the previous scenario is true, then the price might test the $25,000 resistance.
BTC Dips Limited
Bitcoin could move lower if it fails to break the $24,200 resistance level. Support for bitcoin’s downside right now is at the $23,800 level, and the 100-hourly SMA.
The Fib level for the upward movement from $22,686 swing lows to $24,901 highs is close to 50%. Near the $23,500 support level is now the next significant support. The bears could push the price lower than the $23,500 level to trigger a movement towards the $23,000 mark. A further drop in the price could lead to a move towards the $22,500 mark.
Indicators technical
Hourly MACD – The MACD is now losing pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major Support Levels – $23,800, followed by $23,500.
Major Resistance Levels – $24,200, $24,500 and $25,000.