Bitcoin Price Holds Key Support But The Bulls Seem To Be Losing Steam

Bitcoin price failed to settle above $23,500 and corrected lower. BTC is trading above $22,400, but it is now trading below the 100 hourly SMA.

• Bitcoin is slowly moving lower from the $23,500 resistance zone.
• The price is trading below $23,000 and the 100 hourly simple moving average.
• There is a key contracting triangle forming with resistance near $23,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could start a fresh increase if it clears the $23,000 resistance zone.

Bitcoin Price Faces Resistance

Bitcoin price attempted a fresh increase above the $23,500 resistance zone. However, BTC struggled to gain bullish momentum above the $23,800 level. A new yearly high was formed near $23,829 and the price started a downside correction.

There was a drop below the $23,200 and $23,000 support levels. The price even spiked below $22,500 and traded as low as $22,492. It is now consolidating losses above $22,500.

Bitcoin price is now trading below $23,000 and the 100 hourly simple moving average. There is also a key contracting triangle forming with resistance near $23,000 on the hourly chart of the BTC/USD pair.

It is slowly moving above the 23.6% Fib retracement level of the recent decline from the $23,829 swing high to $22,492 low. An immediate resistance is near the $23,000 level, the 100 hourly simple moving average, and the triangle trend line.

Source: BTCUSD on TradingView.com

The next major resistance is near the $23,150 zone or the 50% Fib retracement level of the recent decline from the $23,829 swing high to $22,492 low, above which the price might gain bullish momentum. In the stated case, the price may perhaps rise towards the $23,800 level. The next resistance could be near the $24,200 level. Any more gains might send btc price towards the $25,000 level.

Downside Break in BTC?

If bitcoin price fails to clear the $23,000 resistance, it could continue to move down. An immediate support on the downside is near the $22,500 zone and the triangle lower trend line.

The next major support is near the $22,400 zone. A downside break below the $22,400 level might send the price towards the $22,000 level. Any more losses might send the price to $21,250 in the near term.

Technical indicators:

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

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

Major Support Levels – $22,500, followed by $22,400.

Major Resistance Levels – $23,000, $23,150 and $23,500.