Bitcoin experienced a sharp decline after the resistance of $23,000 against the US Dollar. BTC continues to decline and is at risk of falling below $21,800.
- Bitcoin traded at $22,200 and started to fall.
- The current price of the stock is trading at below the $22,500 mark and the 100 hourly simple moving mean.
- A break was seen below a bullish trend line, with support close to $22,700 in the hourly chart for the pair BTC/USD (data feed by Kraken).
- If the pair falls below $21,450, it could drop sharply.
Bitcoin price begins a new decline
Bitcoin prices attempted to move clear above $24,000 resistance. The bears were seen near the $23,800 area. Just before the new decline began, the previous swing high was at close to $23,744.
The price dropped below the $22,500 support area and 100 hourly simple moving mean. The bulls were still active in the $21,950 area. Recently, there was an upward correction beyond the $22,200 resistance level. It rose above 23.6% Fib resistance level, which was the lowest point of the downward movement from the $22,744 swing high and the $21,950 low.
Sellers were able to withstand the $23,000-zone and 100 hourly simple moving median. The 50% Fib Retracement level for the downmove from the $22,744 swing low to the $21,950 high was reached but the price fell below.
Now, it is moving below $22,000 The hourly BTC/USD chart showed a breakout below the key bullish trendline with support at $22,700. Now, it is close to a support at $21,800. The upside is that bitcoin could encounter resistance around the $22,200 area.
Source: BTCUSD from TradingView.com
Near the $22,500 area is the next major resistance. If the price closes above $22,500, it could lead to further gains. If the previous scenario is true, then the price might rise to the $23,000 mark. Next comes resistance at the $24,000 area.
What is the Downside to Bitcoin?
It could move lower if bitcoin does not reach the $21,800 resistance. Support for bitcoin’s downside lies near $21,600.
Now, the next significant support is located near $21,500. Clear breaks and near the $21,500 level could send the price up to $20,500 (or even 20,000.)
Indicators technical
Hourly MACD – The MACD is now gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is well below the 50 level.
Major Support Levels – $21,600, followed by $21,500.
Major Resistance Levels – $22,200, $22,500 and $23,000.
