Bitcoin price is struggling below $22,000 against the US Dollar. BTC might extend losses if it stays below the $22,000 and $23,000 resistance levels.
Bitcoin Price Analysis
Bitcoin price started a major decline below the $25,500 support zone. There was a sharp bearish wave and the price even declined below the $23,000 support zone.
The bears pushed the price below the $20,000 level and the 55 simple moving average (4-hours). It even broke the $18,800 support. A low is formed near $17,567 and the price started an upside correction. There was a move above the $20,000 resistance zone.
The price even tested the 23.6% Fib retracement level of the downward move from the $31,549 swing high to $17,567 low. An immediate resistance on the upside is near the $20,850 level and the 55 simple moving average (4-hours).
The first major resistance is near the $21,450 level. The next major resistance on the upside is near the $22,000 level. There is also a major bearish trend line forming with resistance near $22,250 on the 4-hours chart of the BTC/USD pair.
To start another increase, the price must settle above the $23,000 level in the near term. In the stated case, bitcoin could rise towards the 50% Fib retracement level of the downward move from the $31,549 swing high to $17,567 low at $24,550.
If there is no upside break, the price might start a fresh decline below $20,000. The next key support is near the $18,800 level. Any more losses might call for a test of the $17,500 support zone.
Looking at the chart, bitcoin price is clearly trading below $22,000 and the 55 simple moving average (4-hours). Overall, the price could continue to move down if it stays below the $23,000 pivot zone.
4 hours MACD – The MACD is now gaining momentum in the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI is now near the 50 level.
Key Support Levels – $20,000 and $18,800.
Key Resistance Levels – $21,450, $22,000 and $23,000.
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