Bitcoin price shows early signs of new downtrend, but $22,500 is key

Bitcoin fell further below $23,000 against the US dollar. BTC is heading lower and remains at risk of more losses if it breaks the $22,000 support.

  • Bitcoin extended losses and fell below the $23,200 support.
  • The price is now trading below $23,500 and the 100 hourly simple moving average.
  • A key bearish trend line has formed with resistance near $23,550 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair is likely to extend losses if there is a clear break below the $22,500 support in the near term.

Bitcoin price rises with bearish momentum

Bitcoin price settles below $24,000, entering bearish zone. BTC is gaining bearish momentum below the $23,500 and $23,200 support levels.

It opened the door for more losses below $23,000 and the 100 hourly simple moving average. Finally, the price found support near the $22,700 area. A low was formed near $22,715 and the price is now consolidating losses.

Bitcoin price is now below the $23,200 level, while 100 hour simple moving average. On the upside, immediate resistance lies near $23,150. It is near the 23.6% Fib retracement level of the key decline from the $24,440 swing high to $22,715 low.

The first major resistance on the upside is near $23,550. It is near the 50% Fib retracement level of the key decline from the $24,440 swing high to $22,715 low.

Source: BTCUSD on TradingView.com

There is also a key bearish trend line forming with resistance near $23,550 on the hourly chart of the BTC/USD pair. Major resistance is near the $23,750 area and the 100 hourly simple moving average. A close above the $23,550 and $23,800 resistance levels could start another rise.

In the aforementioned case, the price could climb above the $24,000 resistance. Any more gains could push the price towards the $24,500 level.

BTC to lose more?

If Bitcoin fails to break the $23,200 resistance zone, it could continue to decline. Immediate support on the downside is near $22,715.

The next major support is now near $22,500. A downside breakout and close below $22,500 could push the price further into bearish territory. In the aforementioned scenario, the price could drop towards the $21,200 level.

Technical indicators:

Hourly MACD – The MACD is now picking up pace in the bearish zone.

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

Major support levels – $22,715, followed by $22,500.

Major resistance levels – $23,200, $23,550 and $23,800.

Source link