Bitcoin Price At Risk of Downside Thrust Before A Fresh Increase

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Bitcoin price is correcting lower below the $24,500 level. BTC could decline towards the $23,500 support before it starts a fresh increase in the near term.

  • Bitcoin is slowly moving lower below $24,500 and $24,000.
  • The price is trading below $24,500 and the 100 hourly simple moving average.
  • There was a break below a major bullish trend line with support near $24,550 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could extend its decline towards the $23,500 and $23,000 support levels.

Bitcoin Price Corrects Lower

Bitcoin price made another attempt to gain pace above the $25,000 resistance zone. However, BTC failed to continue higher above the $25,200 level and started a fresh decline.

There was a clear move below the $24,500 support zone. Besides, there was a break below a major bullish trend line with support near $24,550 on the hourly chart of the BTC/USD pair. The pair even broke the $24,000 support zone and traded as low as $23,867.

Bitcoin price is now trading below $24,500 and the 100 hourly simple moving average. It is slowly correcting higher and trading above the 23.6% Fib retracement level of the recent decline from the $25,190 swing high to $23,867 low.

On the upside, an immediate resistance is near the $24,550 level and the 100 hourly simple moving average. It is near the 50% Fib retracement level of the recent decline from the $25,190 swing high to $23,867 low.

Bitcoin Price

Source: BTCUSD on TradingView.com

The next major resistance is near the $25,000 zone. A clear move above the $25,000 resistance might resend the price towards the $25,200 resistance zone. A close above the $25,200 resistance might start another decent increase. In the stated case, the price may perhaps rise towards the $25,800 level. The next resistance could be near the $26,200 level.

More Losses in BTC?

If bitcoin price fails to clear the $24,550 resistance, it could continue to move down. An immediate support on the downside is near the $24,000 zone.

The next major support is near the $23,850 zone. If there is a downside break, the price might decline towards $23,500. The next major support is near the $23,380 level, below which the price might decline towards the $22,900 support.

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 50 level.

Major Support Levels – $23,850, followed by $23,500.

Major Resistance Levels – $24,550, $25,000 and $25,200.

Source: NewsBTC

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