Bitcoin Price Faces Rejection And It’s Vulnerable to a Drop Below $22K
Bitcoin price is moving lower below the $22,200 level. BTC could take a hit if there is a close below the $22,000 support zone in the near term.
- Bitcoin is showing bearish signs below the $22,500 resistance zone.
- The price is trading below $22,250 and the 100 hourly simple moving average.
- There is a key bearish trend line forming with resistance near $22,250 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair remains at a risk of a larger decline if there is a close below $22,000.
Bitcoin Price At Risk
Bitcoin price attempted an upside correction from the $22,000 support zone. BTC climbed above the $22,250 and $22,400 levels. However, the bears were active near the $22,600 level.
The price faced a rejection near the $22,600 level and recently declined sharply. There was a sharp move below the $22,200 and $22,000 levels. A low is formed near $21,904 and the price is now consolidating losses. There was a minor increase above the $22,000 level.
Bitcoin price is now trading below $22,250 and the 100 hourly simple moving average. It is testing the 50% Fib retracement level of the recent decline from the $22,600 swing high to $21,904 low.
An immediate resistance is near the $22,250 level. There is also a key bearish trend line forming with resistance near $22,250 on the hourly chart of the BTC/USD pair. The next major resistance is near the $22,420 zone. It is near the 76.4% Fib retracement level of the recent decline from the $22,600 swing high to $21,904 low.
Source: BTCUSD on TradingView.com
The main barrier is now near the $22,750 zone. A close above the $22,750 resistance might start a decent increase towards the $23,200 resistance zone. The next key resistance is near the $23,850 zone, above which the price might rally.
More Losses in BTC?
If bitcoin price fails to clear the $22,250 resistance and $22,420, it could start another decline. An immediate support on the downside is near the $22,000 zone.
The next major support is near the $21,800 zone, below which the price might drop to $21,200. The next major support is near the $20,500 level. Any more losses might send the price towards the $20,000 level.
Technical indicators:
Hourly MACD – The MACD is now gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major Support Levels – $22,000, followed by $21,200.
Major Resistance Levels – $22,250, $22,420 and $23,000.
