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Bitcoin price extended its rally above $21,500 and $23,000 against the US Dollar. BTC traded to a new all-time high near $23,215 before correcting gains.
- Bitcoin started a short-term downside correction after trading as high as $23,715.
- The price is currently holding the $22,350 support and it is well above the 100 hourly simple moving average.
- There was a break above a key contracting triangle with resistance near $22,850 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is likely to resume its upward move as long as it is above the $22,350 support zone.
Bitcoin Price is Forming Key Support Base
Yesterday, there was a massive upward move in bitcoin price above the $20,000 resistance. BTC surged over 20% and it even broke the $22,000 resistance level. The upward move gained pace above the $23,000 level and the price settled well above the 100 hourly simple moving average.
The price traded to a new all-time high at $23,715 before it started a downside correction. There was a break below the $23,000 and $22,800 levels. However, the bulls were able to protect the price from diving below $22,000.
A swing low was formed near $22,263 and the price started forming a base above $22,350. It climbed back above the $22,500 and $22,600 levels. There was also a break above the 50% Fib retracement level of the recent decline from the $23,715 high to $22,263 low.
Source: BTCUSD on TradingView.com
There was also a break above a key contracting triangle with resistance near $22,850 on the hourly chart of the BTC/USD pair. Bitcoin price is now struggling to settle above the $23,000 level.
The first key resistance is near the $23,160 level. It is close to the 61.8% Fib retracement level of the recent decline from the $23,715 high to $22,263 low. A successful close above the $23,160 level could open the doors for a fresh increase towards the $23,700 and $24,000 levels in the near term.
Downsides Supported in BTC?
If bitcoin starts another short-term downside correction, it could find support near the $22,500 level. The first key support is near the $22,350 level.
A downside break below the $22,350 support base may possibly spark an extended decline. In the stated case, the price could even decline below the $22,000 support level.
Technical indicators:
Hourly MACD – The MACD is likely to move back into the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently well above the 50 level.
Major Support Levels – $22,500, followed by $22,350.
Major Resistance Levels – $23,000, $23,160 and $23,700.
