TA: Bitcoin Holds Strong Above $22K, Why BTC Could Resume Its Rally

Aayush Jindal

1 year ago

2 mins read

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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.

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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