Home CryptocurrencyAnalysis Bitcoin price breaking this confluence resistance could trigger a big rally

Bitcoin price breaking this confluence resistance could trigger a big rally

by SuperiorInvest

Bitcoin is moving in a positive zone above the $22,000 resistance against the US dollar. BTC could climb higher if there is a clear move above the $22,500 resistance.

  • Bitcoin settled above the $21,500 and $22,000 resistance levels.
  • The price is now trading above $22,000 and the 100 hourly simple moving average.
  • A significant bullish trend lien is forming with support near $21,800 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair is consolidating gains and may see a fresh rise above the $22,500 resistance.

The price of Bitcoin is tracking further upswings

Bitcoin price picked up momentum for a clear move above Resistance levels at $21,500 and $22,000. The price even settled above the $22,000 resistance zone and the 100 hourly simple moving average.

It recently tried to clear the $22,500 resistance zone. A high was formed near $22,473 before the price started a downward correction. There was a move below the $22,200 level. The price was trading below the 23.6% Fib retracement level of the move up from the $21,180 swing low to the $22,473 high.

Bitcoin price is now trading above $22,000 and 100 hour simple moving average. A significant bullish trend flag is also emerging on the hourly chart of the BTC/USD pair with support near $21,800.

Source: BTCUSD on TradingView.com

On the upside, immediate resistance is near the $22,450 level. Another major resistance is located near the $22,500 level. A close above the $22,500 resistance could start a new rally. In this case, the price can increase up to 23,200 USD. Any further gains could send the price to the $24,000 resistance zone.

Limited BTC decline?

If Bitcoin fails to clear the $22,500 resistance zone, it could initiate a downward correction. Immediate downside support is near the $22,000 zone.

Another major support is near the trend line and $21,800. It is near the 50% Fib retracement level of the move up from the $21,180 swing low to the $22,473 high. The first major support is now forming near the $21,500 level. A downside break below the $21,500 level may send the price towards the $21,000 support.

Technical indicators:

Hourly MACD – MACD is now losing momentum in the bullish zone.

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

Major support levels – $21,800, followed by $21,500.

Major resistance levels – $22,450, $22,500 and $23,200.

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