Market
Bitcoin Price Recovers But Here’s What Could Trigger Another Decline
Bitcoin is attempting a recovery wave above $21,500 against the US Dollar. BTC must clear the $22,650 resistance zone to move into a positive zone.
- Bitcoin is slowly moving higher above the $21,400 and $21,500 levels.
- The price is now trading above the $21,400 level and the 100 hourly simple moving average.
- There is a major bearish trend line forming with resistance near $22,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could recover higher, but the bears might remain active near the $22,650 zone.
Bitcoin Price Attempts Recovery
Bitcoin price seems to be forming a base above the $21,000 support zone. BTC is slowly moving higher above the $21,200 and $21,400 levels.
There was a minor increase above the $21,500 resistance zone and the 100 hourly simple moving average. The price even spiked above the 23.6% Fib retracement level of the key drop from the $24,416 swing high to $20,797 low.
However, the price failed to settle above the $21,650 resistance zone. Bitcoin is now trading above the $21,400 level and the 100 hourly simple moving average.
On the upside, an immediate resistance is near the $21,650 and $21,700 levels. The first major resistance on the upside sits near the $22,000 level. The next key resistance could be near the $22,500 zone. There is also a major bearish trend line forming with resistance near $22,400 on the hourly chart of the BTC/USD pair.
Source: BTCUSD on TradingView.com
The main hurdle could be near the $22,650 zone. It is close to the 50% Fib retracement level of the key drop from the $24,416 swing high to $20,797 low. If there is an upside break above the $22,650 resistance zone, the price may perhaps rise towards the $23,500 resistance zone. Any more gains might send the price towards the $24,000 resistance zone.
Fresh Decline in BTC?
If bitcoin fails to clear the $22,500 resistance zone, it could start another decline. An immediate support on the downside is near the $21,400 level and the 100 hourly simple moving average.
The next major support now sits near the $21,000 level. A clear move below the $21,000 support might increase selling pressure in the near term. In the stated case, the price might decline towards the $20,000 level.
Technical indicators:
Hourly MACD – The MACD is now losing pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now just above the 50 level.
Major Support Levels – $21,400, followed by $21,000.
Major Resistance Levels – $21,650, $22,000 and $22,650.
