Bitcoin price began a downward correction below the $ 23,000 support against the US dollar. BTC is likely to drop again as long as it’s below $ 23,500 and the 100-hour SMA.
- Bitcoin started a new correction, trading below the USD 23,500 and USD 23,200 support levels.
- The price is currently trading well below $ 23,500 and the 100-hour simple moving average.
- The hourly chart of the BTC / USD pair (data feed from Kraken) broke below a major bullish trend line with support near USD 23,250.
- The pair is likely to continue falling unless it clears $ 23,500 and the 100-hour SMA.
Bitcoin price corrects profits
After another failure near $ 24,000, Bitcoin price began a downward correction. BTC traded below the $ 23,500 and $ 23,200 support levels to enter a short-term bearish zone.
The price even fell below $ 22,500 and was below the 100 hour simple moving average. There was also a break below a major bullish trendline with support near USD 23,250 on the hourly chart for the BTC / USD pair. A low was formed near $ 21,879 before the price rallied sharply.
Bitcoin climbed above the USD 22,000 and USD 22,200 levels. It was even above the 50% fib retracement level of the recent drop from $ 24,300 to $ 21,879.
Source: BTCUSD on TradingView.com
However, the bulls struggled to beat the USD 23,200 resistance level and broken trendline. The 100 hour simple moving average also acts as a strong resistance near $ 23,400. More importantly, a bearish bearish trendline is forming with resistance near $ 23,400.
The trendline is close to the Fib retracement level at 61.8% of the recent drop from $ 24,300 to $ 21,879. A close above the trendline resistance, 100 hour SMA and $ 23,500 could open the doors for a fresh move towards $ 24,000 and $ 24,300.
Other disadvantages with BTC?
If Bitcoin doesn’t cross the 100-hour SMA and $ 23,500, it could see another drop. Initial downside support is near the USD 22,500 level.
The first major support is near the USD 22,200 level. The main support is forming near the $ 22,000 level, below which there is a risk of a short-term decline towards the $ 21,000 zone.
Technical indicators:
Hourly MACD – The MACD is struggling to get into the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC / USD is currently just below the 50 level.
Major support levels – $ 22,200 followed by $ 22,000.
Main Resistance Levels – $ 23,000, $ 23,200, and $ 23,500.
