Home CryptocurrencyAnalysis Bitcoin price just saw a technical correction, but key uptrend support remained intact

Bitcoin price just saw a technical correction, but key uptrend support remained intact

by SuperiorInvest

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.

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