Bitcoin Price Plunges 5% After Rejection and Now At Risk of Move To $21K
Bitcoin price declined sharply after another rejection near $23,650. BTC is now consolidating above $22,000 and remains at a risk of more downsides.
Bitcoin is down over 5% and there was a sharp reaction from the $23,650 resistance zone. The price is trading below $23,020 and the 100 hourly simple moving average. There is a key bearish trend line forming with resistance near $23,220 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair could correct higher, but upsides might be limited above the $22,800 level.Bitcoin Price Declines Sharply
Bitcoin price struggled to clear the $23,650 and $23,950 resistance levels. BTC declined sharply from the $23,977 swing high. It is down over 5% and there was a clear move below the $23,200 support.
The bears pushed the price below the $22,500 support zone and the 100 hourly simple moving average. It even tested the $22,000 support zone. A low is formed near $22,000 and the price is now consolidating losses. It is trading well below $23,020 and the 100 hourly simple moving average.
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The first major resistance is near the $22,800 zone. The main resistance is now near the $23,000 zone. It is close to the 50% Fib retracement level of the downward move from the $23,977 swing high to $22,000 low. There is also a key bearish trend line forming with resistance near $23,220 on the hourly chart of the BTC/USD pair.
Source: BTCUSD on TradingView.com
A clear move above the $23,220 resistance might start a steady increase towards the $24,650 resistance zone. The next key resistance is near the $24,000 zone, above which the price might move into a bullish zone.
More Losses in BTC?
If bitcoin price fails to clear the $22,800 resistance, it could start another decline. An immediate support on the downside is near the $22,200 zone.
The next major support is near the $22,000 zone, below which the bears might gain strength and push the price to $21,200. The next major support is near the $21,000 level.
Technical indicators:
Hourly MACD – The MACD is now gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 30 level.
Major Support Levels – $22,200, followed by $22,000.
Major Resistance Levels – $22,450, $22,800 and $23,220.