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Bitcoin Price Could Avoid Another Drop If It Closes Above One Key Level

skrimon

Well-known member
Bitcoin is struggling to gain pace above $21,500 against the US Dollar. BTC must clear the $22,500 resistance zone to avoid a fresh decline in the near term.

Bitcoin is struggling to gain pace above the $21,500 and $21,600 levels. The price now trades above the $21,500 level and the 100 hourly simple moving average.

There is a key bearish trend line forming with resistance near $22,000 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair could start a decent increase if there is a close above the $22,000 resistance zone.

Bitcoin Price Faces Hurdles
Bitcoin price started a minor upside correction from the $21,000 support zone. BTC was able to slowly move higher above the $21,250 and $21,500 levels.

The price broke the $21,650 level and the 100 hourly simple moving average. There was a clear move above the 23.6% Fib retracement level of the downward move from the $24,416 swing high to $20,797 low.

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However, the bulls struggled to gain strength for a push towards the $22,000 resistance. Bitcoin is trading above the $21,500 level and the 100 hourly simple moving average. On the upside, immediate resistance is near the $21,750 and $21,800 levels.

The first significant resistance on the upside sits near the $22,000 level. There is also a key bearish trend line forming with resistance near $22,000 on the hourly chart of the BTC/USD pair.


A clear move above the trend line resistance might send the price towards the $22,500 zone. The next major resistance could be near the $22,650 zone.

It is close to the 50% Fib retracement level of the downward move from the $24,416 swing high to the $20,797 low. Any more gains might send the price towards the $24,000 resistance zone.

Fresh Decline in BTC?

If bitcoin fails to clear the $22,000 resistance zone, it could start another decline. Immediate support on the downside is near the $21,500 level and the 100 hourly simple moving average.

The next significant support now sits near the $21,000 level. A close below the $21,000 support might start another decline in the near term. The price might decline towards the $20,000 level in the stated case.
Thanks for reading!
 

Lateral Thinking Forex

Well-known member
I have buy orders in the $12,000 to $13,000 price range. I would expect BTC to sell off to around there after this relief rally and follow the Nasdaq on its next leg down in the bear market. Time will tell... but personally I don't think the equity or crypto markets are anywhere near their bottom yet. Sitting on cash being patient, waiting for those long-term buy opportunities. 📈
 
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