Home CryptocurrencyAnalysis Bitcoin price skyrockets to $22,000, further bullish levels traders should watch out for

Bitcoin price skyrockets to $22,000, further bullish levels traders should watch out for

by SuperiorInvest

Bitcoin gained momentum and even climbed above the $22,000 resistance against the US dollar. BTC corrects gains but declines may be limited below $21,500.

  • Bitcoin managed to clear the $21,200 and $21,500 resistance levels.
  • The price is now trading above $21,500 and the 100 hourly simple moving average.
  • On the hourly chart of the BTC/USD pair (data source from Kraken), a key bullish flag is forming with support near $21,600.
  • The pair is correcting gains, but declines may be limited below the $21,500 level.

Bitcoin price starts fresh rally

Bitcoin price remained well above the $20,000 level and began a fresh increase. There was a clear move above the $21,000 and $21,200 resistance levels.

The price even broke the $21,500 resistance and climbed above the $22,000 resistance. A high was formed near $22,347 and the price recently started a downward correction. There was a move below the $22,000 and $21,850 levels.

Bitcoin price was trading below the 23.6% Fib retracement of the recent rally from $21,180 to a high of $22,347. It is now trading above $21,500 and 100 hour simple moving average. Additionally, a key bullish flag with support near $21,600 is emerging on the hourly chart of the BTC/USD pair.

Source: BTCUSD on TradingView.com

On the upside, immediate resistance is near the $22,000 level. Another major resistance is located near the $22,350 level. A clear move above the $22,350 resistance could start another stable rally. In this case, the price can go up to $22,800. Any further gains could send the price to the $23,200 resistance zone.

Limited BTC decline?

If Bitcoin fails to gain momentum above the $22,000 zone, it could trigger a downward correction. Immediate downside support is near the $21,700 zone.

The 50% Fib retracement level of the recent rise from the $21,180 swing low to the $22,347 high is also near $21,700. The first major support is now forming near the $21,600 level. A downside break below the $21,600 level may send the price towards the $21,200 support.

Technical indicators:

Hourly MACD – The MACD is now picking up momentum in the bearish zone.

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

Major support levels – $21,700, followed by $21,600.

Major resistance levels – $22,000, $22,350 and $23,200.

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