Bitcoin Price Plunges 5% After Rejection and Now At Risk of Move To $21K

Aayush Jindal

1 year ago

2 mins read

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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.

An immediate resistance is near the $22,450 zone. It is near the 23.6% Fib retracement level of the downward move from the $23,977 swing high to $22,000 low.

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.

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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