TA: Bitcoin Dips Below $23K, Why Buyers Are Still Comfortable

Aayush Jindal

1 year ago

2 mins read

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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.

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
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In a world where uncertainty reigns supreme, Aayush Jindal stands as a guiding light, illuminating the path to financial success with his unparalleled expertise, unwavering integrity, and boundless enthusiasm for the markets.

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