Bitcoin Price Consolidates Below $22K and At Risk of Sharp Decline
Bitcoin price is consolidating below the $22,000 resistance. BTC could decline heavily if there is a daily close below the $21,500 support.
- Bitcoin is showing a few negative signs below the $22,000 resistance.
- The price is trading below $22,000 and the 100 hourly simple moving average.
- There was a break above a connecting bearish trend line with resistance near $21,700 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could decline heavily if there is a clear move below the $21,500 support zone.
Bitcoin Price Faces Resistance
Bitcoin price remained in a bearish zone below the $22,200 support zone. BTC settled below the $22,000 zone and settled below the 100 hourly simple moving average.
Recently, there was a spike below the $21,500 support zone. A new weekly low is formed near $21,359 and the price is now consolidating losses. Bitcoin price is now trading below $22,000 and the 100 hourly simple moving average.
There was a minor recovery wave above the $21,650 resistance zone. The price climbed above the 50% Fib retracement level of the recent decline from the $23,450 swing high to $21,359 low.
Besides, there was a break above a connecting bearish trend line with resistance near $21,700 on the hourly chart of the BTC/USD pair. On the upside, an immediate resistance is near the $21,800 level and the 100 hourly simple moving average.
The 61.8% Fib retracement level of the recent decline from the $23,450 swing high to $21,359 low is also near $21,820. The next major resistance is near the $22,100 zone.
Source: BTCUSD on TradingView.com
A clear move above the $22,100 resistance might start a steady increase. In the stated case, the price may perhaps rise towards the $22,385 level. The next resistance could be near the $22,750 level, above which btc price might rise towards the $23,250 resistance zone.
Sharp Decline in BTC?
If bitcoin price fails to clear the $22,100 resistance, it could continue to move down. An immediate support on the downside is near the $21,500 zone.
The next major support is near the $21,350 level, below which the price might start a major decline. In the stated case, the price could decline towards the $20,500 zone.
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 above the 50 level.
Major Support Levels – $21,500, followed by $21,350.
Major Resistance Levels – $21,800, $22,100 and $22,385.
