Bitcoin gained speed and even crossed the $22,000 barrier against the US Dollar. BTC may be correcting its gains, but drops below $21,500 might not be as severe.
- Bitcoin cleared the resistance levels of $21,200 and $25,500.
- The price traded at $21,500 above the 100 hourly moving average.
- The hourly chart for the BTC/USD pair shows a bullish trend line with support close to $21,600. (Data feed from Kraken).
- Although the pair has corrected gains, dips below $21,500 might not be as severe.
New Rally Starts for Bitcoin Prices
The Bitcoin price was well above $20,000 and then started an increase. The Bitcoin price moved clear above the $21,000 resistance level and past $21,200.
Even surpassing the $21,500 resistance, the price soared to above the $22,000 threshold. Near $22,347 was the high and there has been a recent correction. A move was seen below the $22,000 level and at $21,850.
Bitcoin traded at 23.6% Fib level, which is the level of the recent spike from the $21,180 swing high to the $22,347 low. The 100-hourly simple moving average and $21,500 are now the highest levels of trading. A bullish trend lien has formed with support close to $21,600 in the hourly chart for the pair BTC/USD.
Source: BTCUSD from TradingView.com
Surprisingly, the immediate resistance lies near $22,000. Near the $22,350 mark is the next significant resistance. An increase in price above $22,350 could signal a new trend. If the previous scenario is true, then the price might rise to $22,800. The price could reach the $23,200 threshold if it gains more.
BTC Dips Limited
Bitcoin could begin a downward correction if it fails to grow above $22,000. The $21,700 area is a support zone for the downside.
Near $21,700 is the 50% Fib level that retraced the increase in price from $21,180 swing lows to $22,347 highs. Near the $21,600 mark is currently the first significant support. If the market falls below $21,600, it could push the price toward the $21,200 level.
Hourly MACD – The MACD is now gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Major Support Levels – $21,700, followed by $21,600.
Major Resistance Levels – $22,000, $22,350 and $23,200.