Bitcoin formed a base at the $21,000 mark against the US dollar. BTC may be trying to rebound, but gains greater than $23,000 might still be protected by the bears.
- Bitcoin was trading as low as $208,824 when the bulls intervened.
- The price currently trades below the $24,000 mark and the 100 hourly simple moving mean.
- A key bearish trendline is emerging with resistance close to $22,050 in the hourly BTC/USD chart (data feed Kraken).
- To start a good recovery wave, the pair needs to clear $23,000 of resistance.
Bitcoin price remains in downtrend
Bitcoin’s price was in a bearish zone, below the $25,000 resistance zone. Bitcoin price fell below $21,000 and then settled below $23,000.
An area of $20,824 was the lowest point and now there is an attempt to correct this. A move was seen above $22,000 resistance. However, it is well below $24,000 and the 100-hourly simple moving average.
The $21,100 mark is the immediate resistance. A key bearish trendline is also visible on the hourly charts of BTC/USD pairs. It shows resistance close to $21,100.
It is located near $22,600, the first major resistance. The 23.6% Fib Retracement Level of the downmove from $28,300 high to $20,825 lowest is close by. The pair may rise to $23,000 resistance if it moves above the trendline.
Source: BTCUSD at TradingView.com
It is located near $24,600. The 50% Fib Retracement level is the lowest point of the downmove from $28,300 high to $20,825 lower. An upward trend could begin if the price moves above $24,500, $25,000 and $3,000.
BTC’s Latest Decline
Bitcoin could begin a new decline if it fails to cross the $22,600 resistance level and trend line. Support for the downside lies near the $21,250 mark.
Near the $21,000 support, is the next major support. A fall below the $21,000 level could cause the price to swing towards the $20.825 low. If the price continues to fall below $21,000 support, it could lead to a test for $20,000.
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 still below the 50 level.
Major Support Levels – $21,250, followed by $21,000.
Major Resistance Levels – $22,100, $22,600 and $23,000.