Bitcoin price has started a downward correction below $23,000. BTC is testing an important support and may start a new rally towards $23,500.
- Bitcoin started a downward correction and fell below the $23,000 support zone.
- The price is trading below $23,000 and the 100 hourly simple moving average.
- A major bullish trendline is forming with support near $22,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could start to rise again if it stays above the $22,000 support zone.
Key support for bitcoin price tests
Bitcoin price sought to clear the $23,400 and $23,500 resistance levels. BTC started a downward correction, trading below the $23,000 support zone.
The price dropped below the 23.6% Fib retracement of the key rally from the $20,395 swing low to $24,250. The price even jumped below the $22,500 support level. However, bulls have emerged near the $22,200 support zone.
A major bullish trendline is also forming on the hourly chart of the BTC/USD pair with support near $22,400. Bitcoin price is now trading below $23,000 and the 100 hourly simple moving average.
Immediate resistance is near the $22,700 level. Another major resistance is located near the $22,850 zone or the 100-hour simple moving average, above which price could gain bullish momentum. In the said case, the price may probably rise to the level of $23,200.
Source: BTCUSD on TradingView.com
The next resistance could be near the $23,500 level. Any further gains could send the BTC price towards the $24,200 level.
More losses in BTC?
If the price of Bitcoin remains above the trendline support or $22,200, it could continue to decline. Immediate downside support is near the $22,000 zone.
Another major support is near the $21,900 zone or the 50% Fib retracement level of the key rise from the $20,395 low to $24,250 high. A downside break below the $21,900 level may send the price towards the $21,200 level. Any further losses could send the price to $20,500 in the near term.
Technical indicators:
Hourly MACD – MACD is now losing momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – RSI for BTC/USD is now below the 50 level.
Major support levels – $22,100, followed by $22,000.
Major resistance levels – $22,700, $22,850 and $23,200.
