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

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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.

Bitcoin Price

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.

Source: NewsBTC

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