Bitcoin Price Could Narrowly Avoid a Major Downtrend, Here’s How

Bitcoin lost more than $22,650 against the US Dollar. BTC might have to face obstacles near $23,100 if it tries another recovery.

  • Bitcoin was in a bearish area and continued losses below $23,500.
  • The current price of the stock is trading at below $23,000 and below the simple 100-hour moving average.
  • The hourly chart for the BTC/USD pair showed a breakout above the short-term bearish trendline with resistance at $22,850 (data feed Kraken).
  • For steady growth in the short term, the pair has to break the $23,100 resistance.

Bitcoin Price Faces Resistance

After it was confronted by sellers at the $23,570 mark, Bitcoin’s price began a new decline. After breaking the $23,000 support level, bitcoin gained bearish momentum.

Even below the $22,800 and 100 hourly simple moving levels, it traded. Finally, the price spiked below the $22,650 mark. However, the downsides to this spike were minor and prices traded as low $22,400. A new recovery wave began above the $22,800 resistance area.

Bitcoin crossed the 23.6% Fib level of the decline from the $23,570 swing high, to the $22,400 bottom. In addition, the hourly BTC/USD chart showed a breakout above a bearish trend line that provided resistance close to $22,850.

Now, it is trading just below the $23,000 threshold and the 100 hourly simple movement average. The upside is that bitcoin prices are facing resistance close to the $23,000 level, and the 100 hourly SMA.

Bitcoin Price

Source: BTCUSD at TradingView.com

Also, the $23,000-zone is near the Fib retracement point at 50% of the downmove from the $23,570 swing low to the $22,400 high. Near the $23,300 area is the next major resistance. The price could rise steadily if it closes above the $23,500 zone. The price could rise above the $23,500 resistance in the above scenario.

BTC: More losses

It could fall further if bitcoin does not clear the $23,000 barrier and the 100 hourly SMA. Support for the downside lies near $22,800.

Now, the next level of support is near $22,400. If the price closes below $22,400, it could signal a shift towards $22,000. Additional losses could push the price to $21,200.

Technical indicators

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

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

Major Support Levels – $22,800, followed by $22,400.

Major Resistance Levels – $23,000, $23,300 and $24,500.

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