Bitcoin Price Rallies 10% But This Resistance Is The Key To Reversal

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Bitcoin price surged over 10% and cleared the $22,000 resistance. BTC must surpass $22,600 and $22,800 to continue higher in the near term.

  • Bitcoin started a strong increase above the $21,500 resistance zone.
  • The price is trading above $22,000 and the 100 hourly simple moving average.
  • There was a break above a major bearish trend line with resistance near $21,250 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could face a strong selling interest near $22,600 and $22,800.

Bitcoin Price Surges Above $22K

Bitcoin price found a strong support near the $19,500 zone. BTC formed a base and started a major increase above the $20,000 resistance zone.

There was a clear move above the $20,500 and $21,200 resistance levels. Besides, there was a break above a major bearish trend line with resistance near $21,250 on the hourly chart of the BTC/USD pair. The pair even broke the $21,500 resistance zone.

Bitcoin price is trading above $22,000 and the 100 hourly simple moving average. A high is formed near $22,765 and the price is now correcting lower.

It is trading well above the 23.6% Fib retracement level of the upward move from the $19,549 swing low to $22,765 high. An immediate resistance is near the $22,600 level. The next major resistance is near the $22,800 zone.

Bitcoin Price

Source: BTCUSD on TradingView.com

A close above the $22,800 resistance might start a decent increase in the coming days. The next key resistance is near the $23,200 zone, above which the price might gain bullish momentum and test $24,000.

Dips Supported in BTC?

If bitcoin price fails to clear the $22,600 resistance, it could correct lower. An immediate support on the downside is near the $22,000 zone.

The next major support is near the $21,750 zone, below which the price might drop to $21,150 or the 50% Fib retracement level of the upward move from the $19,549 swing low to $22,765 high. The next major support is near the $20,800 level and the 100 hourly simple moving average. Any more losses might send the price towards the $20,000 level.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now in the overbought zone.

Major Support Levels – $22,000, followed by $21,750.

Major Resistance Levels – $22,600, $22,800 and $23,200.

Source: NewsBTC

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