TA: Bitcoin Price Lacks Momentum, Why BTC Could Drop 5%

Aayush Jindal

1 year ago

2 mins read

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Bitcoin is struggling to climb above the $24,000 resistance zone against the US Dollar. BTC is declining and might continue to move down towards the $22,000 support.

Bitcoin is showing bearish signs below the $23,500 level.
The price is now trading below the $23,200 level and the 100 hourly simple moving average.
There is a major bearish trend line forming with resistance near $23,250 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could continue to slide and might even test the $22,000 support in the near term.

Bitcoin Price Signals Decline

Bitcoin price started a steady decline from well above the $24,000 resistance zone. The price declined below the $23,500 and $23,250 to move into a short-term bearish zone.

The declined gained pace below the 100 hourly simple moving average. It even tested the 50% Fib retracement level of the key increase from the $20,695 swing low to $24,671 high. The price is now struggling below the $23,200 level and the 100 hourly simple moving average.

There is also a major bearish trend line forming with resistance near $23,250 on the hourly chart of the BTC/USD pair. However, it seems like the bulls are protecting the $22,680 support zone.

On the upside, bitcoin price is facing resistance near the $23,250 level and the trend line. The next key resistance is near the $23,520 zone and the 100 hourly simple moving average.

Source: BTCUSD on TradingView.com

The main resistance could be near the $24,180 zone. A close above the $24,180 resistance zone could set the pace for a decent increase. In the stated case, the price may perhaps rise towards the $24,650 level. The next major resistance sits near the $25,000 level.

More Losses in BTC?

If bitcoin fails to clear the $23,250 resistance zone and the trend line, it could continue to move down. An immediate support on the downside is near the $22,680 level.

The next major support now sits near the $22,210 level. It is near the 61.8% Fib retracement level of the key increase from the $20,695 swing low to $24,671 high. Any more losses might send the price towards $22,000 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 50 level.

Major Support Levels – $22,680, followed by $22,210.

Major Resistance Levels – $23,250, $23,520 and $24,180.

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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