Bitcoin price started a bearish correction below $23,000. BTC is testing a key support and may initiate a fresh rally towards $23,500.
- Bitcoin started a downside correction and broke below the $23,000 support zone.
- The price is trading below $23,000 and the 100 hourly simple moving average.
- A major bullish trend is forming with support near $22,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could initiate a fresh rally if it stays above the $22,000 support zone.
Bitcoin price test key support
Bitcoin price Struggled to clear the $23,400 and $23,500 resistance levels.. BTC started a downside correction and traded below the $23,000 support zone.
The price broke below the 23.6% Fib retracement level of the key rally from the $20,395 swing low to the $24,250 high. The price even broke below the $22,500 support level. However, bulls appeared near the $22,200 support zone.
There is also a major bullish trend with support near $22,400 on the hourly chart of the BTC/USD pair. Bitcoin price is now trading below $23,000 and the 100 hourly simple moving average.
An immediate resistance is near the $22,700 level. The next major resistance is near the $22,850 zone or the 100 hourly simple moving average, above which The price may gain momentum. In the described case, the price might move towards the $23,200 level.
Source: BTCUSD on TradingView.com
The next resistance could be near the $23,500 level. Any further gains could send the BTC price to the $24,200 level.
More losses in BTC?
If the price of Bitcoin stays above the trendline support or $22,200, it could move to the downside. Immediate support on the downside is near the $22,000 zone.
The next major support is near the $21,900 zone or the 50% Fib retracement level, a key rise below $20,395 to $24,250. A negative break below the $21,900 level could send the price towards the $21,200 level. Further losses could send the price towards $20,500 in the near term.
Technical indicators:
Hourly MACD – MACD is now losing momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Key support levels – $22,100, followed by $22,000.
Major resistance levels – $22,700, $22,850 and $23,200.
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