Bitcoin Price Hints At Potential Correction, Buy The Dip?

Bitcoin price started another downside correction below $23,250. BTC remains at a risk of more downsides before the bulls appear near $22,200 or $22,000.

• Bitcoin started a downside correction and traded below the $23,500 zone.
• The price is trading below $23,200 and the 100 hourly simple moving average.
• There was a break below a key bullish trend line with support near $23,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could decline further towards the $22,000 support unless it climbs above $23,250.

Bitcoin Price Starts Correction

Bitcoin price gained pace for a move above the $23,500 resistance zone. BTC even climbed above $23,800, but it struggled to clear the $24,000 resistance zone.

A new swing high was formed near $23,950 and the price saw a downside correction. There was a clear move below the $23,500 and $23,200 support levels. Besides, there was a break below a key bullish trend line with support near $23,000 on the hourly chart of the BTC/USD pair.

A low is formed near $22,519 and the price is now correcting losses. Bitcoin price is now trading below $23,200 and the 100 hourly simple moving average.

It is trading just above the 23.6% Fib retracement level of the recent decline from the $23,950 swing high to $22,519 low. An immediate resistance is near the $23,000 level. The next major resistance is near the $23,200 zone or the 100 hourly simple moving average.

Source: BTCUSD on TradingView.com

The 50% Fib retracement level of the recent decline from the $23,950 swing high to $22,519 low is also near the $23,250 zone, above which the price might start a strong increase. In the stated case, the price may perhaps rise towards the $23,650 level. The next resistance could be near the $24,000 level. Any more gains might send btc price towards the $25,000 level.

More Downsides in BTC?

If bitcoin price fails to clear the $23,250 resistance, it could continue its downside correction. An immediate support on the downside is near the $22,650 zone.

The next major support is near the $22,500 zone. A downside break below the $22,500 level might send the price towards the $22,200 level. Any more losses might send the price to $22,000 in the near term.

Technical indicators:

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

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

Major Support Levels – $22,500, followed by $22,200.

Major Resistance Levels – $23,000, $23,250 and $23,800.