Bitcoin has a significant resistance against the US Dollar at $23,500. To avoid another bearish reaction, BTC needs to clear $23,500.
- Bitcoin trading is below $23,500 and it’s struggling to climb.
- The current price of the stock is trading at below $23,200 and the simple 100-hour moving average.
- A key channel of rising support is emerging with support at $22,800 (data feed Kraken).
- For a good increase to occur in the short term, both must break the $23,500 resistance.
Bitcoin price upsides capped
Bitcoin prices rose after breaking through the $23,500 support level. To move into a bearish short-term zone, the price traded as low as $23,000
But, bulls saved the $22,650 level. As a support, the 50% Fib level of the upward movement from the $20.692 swing low down to the $24,671 high was maintained. This price was able to form a foundation and has recently recovered some losses at the $23,000 mark.
Bitcoin reached 23.6% Fib level, which is the retracement of the downmove from the $24,699 swing low to the $22,649 high. Even though the Bitcoin price spiked over $23,400, there was strong resistance around $23,500.
The price is currently trading at below $23,200 and the 100-hourly simple moving average. On the hourly chart for the BTC/USD pair, there is a rising channel with support at $22,800. The upside is that bitcoin prices are facing resistance around the $23,200 mark and the 100 hourly SMA.
Source: BTCUSD from TradingView.com
Next is the $23,500 resistance zone. An increase of at least 5% could be possible if the resistance zone is close to $23,500. The price could rise to $24,215 in this scenario. Next comes resistance at the level of $24,700.
BTC: More losses
It could fall further if bitcoin does not clear the $23,500 channel resistance and the resistance zone. The $22,800 level is a support area for the downside.
Next is the $22,640 level. If the price drops below $22,640, it could lead to a dramatic decline of $21,750. Price could fall to $21,000 if there are more losses.
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 now near the 50 level.
Major Support Levels – $22,800, followed by $22,500.
Major Resistance Levels – $23,200, $23,500 and $24,180.