TA: Bitcoin Dips Below $23K, Why Buyers Are Still Comfortable
Bitcoin price came under pressure after ripple’s XRP massive decline below $0.3000 against the US Dollar. BTC traded below $23,000, but it is still well above the $22,000 support.
- Bitcoin started a fresh decline after it failed to clear the $24,000 resistance zone.
- The price is currently trading below the $23,000 support and the 100 hourly simple moving average.
- There was a break below a major bullish trend line with support near $23,350 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is likely to remain well supported on the downside near $22,350 and $22,000.
Bitcoin Price is Slowly Declining
There was another attempt by bitcoin price to clear the $24,000 resistance level. However, BTC struggled to gain momentum and started a fresh decline from the $24,086 swing high.
There was a break below the $23,500 and $23,250 support levels. There was also a break below a major bullish trend line with support near $23,350 on the hourly chart of the BTC/USD pair. The decline gained pace below $23,000 and the price settled below the 100 hourly simple moving average.
It traded as low as $22,629 and it is currently correcting higher. An initial resistance is near the $22,950 level. It is close to the 23.6% Fib retracement level of the recent decline from the $24,081 high to $22,629 low.
Source: BTCUSD on TradingView.com
There is also a bearish trend line forming with resistance near $23,000 on the same chart. The next major resistance is near the $23,360 level and the 100 hourly simple moving average. The 50% Fib retracement level of the recent decline from the $24,081 high to $22,629 low is also near $23,360.
Bitcoin price must break the trend line and then gain pace above the $23,360 to start a fresh increase. The main hurdle for the bulls is still near the $24,000 zone.
More Losses in BTC?
If bitcoin fails to clear the $23,000 and $23,360 resistance levels, there is a risk of more downsides. An initial support on the downside is near the $22,650 zone.
The first major support is near the $22,350 level. The main support is still near the $22,000 level, below which there is a risk of a sustained downward move in the coming sessions.
Technical indicators:
Hourly MACD – The MACD is gaining momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently well below the 50 level.
Major Support Levels – $22,350, followed by $22,000.
Major Resistance Levels – $23,000, $23,360 and $24,000.
OhNoCrypto
via https://www.ohnocrypto.com
Aayush Jindal, @KhareemSudlow