Bitcoin Dips Below $23K, Why Buyers Are Still Comfortable

0
123

Bitcoin price came under pressure after Ripple’s XRP fell massively below $ 0.3000 against the US dollar. BTC has traded below $ 23,000 but is still well above the $ 22,000 support.

  • Bitcoin started a new decline after failing to break the $ 24,000 resistance zone.
  • The price is currently trading below the $ 23,000 support and the 100 hour simple moving average.
  • The hourly chart for the BTC / USD pair (data feed from Kraken) broke below a major bullish trendline with support near USD 23,350.
  • The pair should remain well supported near $ 22,350 and $ 22,000 on the downside.

Bitcoin price is slowly falling

There was another attempt by Bitcoin price to break the $ 24,000 resistance level. However, BTC struggled to gain momentum and started a new drop of $ 24,086.

There was a pause below the $ 23,500 and $ 23,250 support levels. There was also a break below a major bullish trendline with support near USD 23,350 on the hourly chart for the BTC / USD pair. The decline got below $ 23,000 and the price fell below the 100-hour simple moving average.

It was trading as low as $ 22,629 and is currently correcting higher. Initial resistance is near the $ 22,950 level. It is close to the 23.6% Fib retracement level of the recent decline from the high of $ 24,081 to the low of $ 22,629.

Source: BTCUSD on TradingView.com

There is also a bearish trendline with resistance near $ 23,000 on the same chart. The next major resistance is near the $ 23,360 level and the 100-hour simple moving average. The 50% fib retracement level of the recent decline from the high of $ 24,081 to the low of $ 22,629 is also near $ 23,360.

Bitcoin price needs to break the trendline and then pace above $ 23,360 to start a new spike. The main hurdle for the cops is still near the $ 24,000 zone.

More losses at BTC?

If Bitcoin fails to hit the resistance levels of $ 23,000 and $ 23,360, there is a risk of additional downside. Initial downside support is near the $ 22,650 zone.

The first major support is near the $ 22,350 level. The main support is still near the $ 22,000 level below which there is a risk of a sustained downtrend in the upcoming sessions.

Technical indicators:

Hourly MACD – The MACD is gaining momentum in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC / USD is currently well below the 50 level.

Major Support Levels – $ 22,350, followed by $ 22,000.

Main Resistance Levels – $ 23,000, $ 23,360, and $ 24,000.