Bitcoin fell well below the $22,000 support area against the US Dollar. BTC corrects gains, but upside potential may be limited above the $22,500 resistance level.
- Bitcoin extended losses and fell below the $22,000 support level.
- The price is now trading below the $22,000 level and the 100 hourly simple moving average.
- There is a major bearish trend line forming with resistance near $21,550 on the hourly chart of the BTC/USD pair (data feed by Kraken).
- If the pair stays below the $21,500 and $22,000 levels, it can increase losses.
Bitcoin Price Plunges Over 8%
Bitcoin price started a sharp decline below the $23,000 support area. BTC gained bearish momentum below the $22,500 and $22,200 support levels.
The decline was so big that the price fell below the $22,000 support area. It even traded below the $21,000 level and traded low at $20,797. The price is now correcting losses above the $21,000 level. It is now trading below the $22,000 level and the 100 hourly simple moving average.
There was a push above the $21,250 level recently. However, bitcoin price is struggling near the 23.6% Fib retracement level of the recent decline from the $24,414 high to $20,797 low.
On the upside, there is an immediate resistance near $21,500. There is also a major bearish trend line forming with resistance near $21,550 on the hourly chart of the BTC/USD pair. The first major resistance on the upside is near $22,000 and the 100 hourly simple moving average.
Source: BTCUSD at TradingView.com
There is a major resistance forming near the $22,650 area. It is near the 50% Fib retracement level of the recent decline from the $24,414 high to $20,797 low. Further upside might start above the $22,500 and $22,650 resistance levels.
More losses on BTC?
If bitcoin fails to clear the $22,000 resistance area, it could continue to move lower. On the upside, the immediate support is near the $21,250 level.
The next major support is now near the $20,800 level. Another downside break below $20,800 could lead to another sharp decline. In that case, the price could drop towards the $20,000 level.
Hourly MACD – The MACD is now gaining momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Key Support Level – $21,250 followed by $20,800.
Key resistance levels – $21,550, $22,000 and $22,650.