Bitcoin Price Turns Red Below $23K, What Could Trigger A Sharp Decline

Aayush Jindal

1 year ago

2 mins read

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Bitcoin price found support near $22,000 and started a consolidation phase. BTC is trading in a range and facing many hurdles near $22,600.

Bitcoin is struggling to gain pace for a move above the $22,800 resistance zone.
The price is trading below $22,650 and the 100 hourly simple moving average.
There is a key bearish trend line forming with resistance near $22,620 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 Faces Hurdles

Bitcoin price started a major decline from well above the $23,200 support zone. BTC declined heavily below the $23,000 level and even traded below the $22,500 level.

The price traded as low as $22,000 and recently started a minor upside correction. There was a minor increase above the $22,250 resistance zone. The price spiked above the 23.6% Fib retracement level of the downward wave from the $23,978 swing high to $22,000 low.

Bitcoin price is now trading below $22,650 and the 100 hourly simple moving average. There is also a key bearish trend line forming with resistance near $22,620 on the hourly chart of the BTC/USD pair.

An immediate resistance is near the $22,600 zone and the trend line. 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 wave from the $23,978 swing high to $22,000 low.

Source: BTCUSD on TradingView.com

A clear move above the $23,000 resistance might start a steady increase towards the $23,500 resistance zone. The next key resistance is near the $23,220 zone, above which the price might gain bullish momentum.

Fresh Decline in BTC?

If bitcoin price fails to clear the $22,600 resistance and the trend line, 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 aim another sharp decline. The next major support is near the $21,200 level.

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 below the 30 level.

Major Support Levels – $22,200, followed by $22,000.

Major Resistance Levels – $22,620, $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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