Bitcoin Price Consolidates Below $22K and At Risk of Sharp Decline

Aayush Jindal

1 year ago

2 mins read

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Bitcoin price is consolidating below the $22,000 resistance. BTC could decline heavily if there is a daily close below the $21,500 support.

Bitcoin is showing a few negative signs below the $22,000 resistance.
The price is trading below $22,000 and the 100 hourly simple moving average.
There was a break above a connecting bearish trend line with resistance near $21,700 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could decline heavily if there is a clear move below the $21,500 support zone.

Bitcoin Price Faces Resistance

Bitcoin price remained in a bearish zone below the $22,200 support zone. BTC settled below the $22,000 zone and settled below the 100 hourly simple moving average.

Recently, there was a spike below the $21,500 support zone. A new weekly low is formed near $21,359 and the price is now consolidating losses. Bitcoin price is now trading below $22,000 and the 100 hourly simple moving average.

There was a minor recovery wave above the $21,650 resistance zone. The price climbed above the 50% Fib retracement level of the recent decline from the $23,450 swing high to $21,359 low.

Besides, there was a break above a connecting bearish trend line with resistance near $21,700 on the hourly chart of the BTC/USD pair. On the upside, an immediate resistance is near the $21,800 level and the 100 hourly simple moving average.

The 61.8% Fib retracement level of the recent decline from the $23,450 swing high to $21,359 low is also near $21,820. The next major resistance is near the $22,100 zone.

Source: BTCUSD on TradingView.com

A clear move above the $22,100 resistance might start a steady increase. In the stated case, the price may perhaps rise towards the $22,385 level. The next resistance could be near the $22,750 level, above which btc price might rise towards the $23,250 resistance zone.

Sharp Decline in BTC?

If bitcoin price fails to clear the $22,100 resistance, it could continue to move down. An immediate support on the downside is near the $21,500 zone.

The next major support is near the $21,350 level, below which the price might start a major decline. In the stated case, the price could decline towards the $20,500 zone.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.

Major Support Levels – $21,500, followed by $21,350.

Major Resistance Levels – $21,800, $22,100 and $22,385.

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.

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