Bitcoin (BTC) Consolidates Below $22k: What Could Trigger A Sharp Decline?

Bitcoin price is trading in a bearish zone below $22,000. BTC/USD could decline heavily unless there is a clear move above the $22,000 resistance.

Bitcoin Price Takes Hit

This past week, bitcoin price saw a major decline from well above the $25,000 level. The BTC/USD pair traded below the $24,200 and $24,000 support levels to enter a bearish zone.

The price even declined below the $22,000 level and the 50 simple moving average (4-hours, blue). Finally, the bulls appeared near the $20,800 zone. A low is formed near $20,769 and the price is now consolidating losses.

Bitcoin 4-hours chart | Source: BTCUSD on TradingView.com

Recently, there was a minor upside correction above the $21,200 and $21,250 levels. The price was able to move above the $21,500 resistance as well.

However, the bears are defending the $21,800 resistance zone and the 50 simple moving average (4-hours, blue). It is also facing hurdles near the 23.6% Fib retracement level of the key drop from the $25,205 swing high to $20,769 low.

On the upside, an immediate resistance is near the $21,550 level. Besides, there is a key bearish trend line in place with resistance at $21,550 on the 4-hours chart.

The next key resistance might be near the $22,000 level. A clear move above the $22,000 resistance could start a decent increase. In the stated case, the price might test the $23,000 resistance. It is near the 50% Fib retracement level of the key drop from the $25,205 swing high to $20,769 low.

Any more gains might set the pace for a move towards the $23,500 resistance zone. If not, bitcoin price might resume its decline below the $21,200 level.

The first major support is near the $21,050 and $21,000 levels. The main breakdown support sits at $20,800, below which the price could gain bearish momentum. In the stated case, the price may perhaps test the $20,000 support.

Overall, bitcoin price is struggling to recover above the $21,800 and $22,000 resistance levels. If the bears remain in action, there is a risk of a move towards the $20,000 support. Conversely, the price might clear hurdles and rise towards the $23,500 resistance zone.