Key Takeaways:
- Bitcoin price started a major decline from the key $25,000 resistance.
- BTC/USD is trading below a key bearish trend line at $22,000 on the daily chart.
- The bulls must defend the $17,605 low to protect more losses in the coming days.
Bitcoin price faced a major rejection near $25,000 on the daily chart. BTC/USD must stay above $17,600 to avoid a crucial downside break.
Bitcoin Price Starts Fresh Decline
In June 2022, bitcoin price traded as low as $17,605. The BTC/USD pair formed a base above the $18,000 level before it started a decent upward move and a recovery wave.
The price was able to recover above the $19,000 and $20,000 resistance levels. There was a clear move above the 23.6% Fib retracement level of the main decline from the $32,503 swing high to $17,605 low.
Bitcoin daily chart | Source: BTCUSD on TradingView.com
The bulls were able to push the price above the $22,000 resistance zone and the 50-day simple moving average (blue). Finally, there was a break above the $24,000 resistance in August 2022. However, the bears were active near a major hurdle at $25,000.
It seems like the 50% Fib retracement level of the main decline from the $32,503 swing high to $17,605 low acted as a major barrier for the bulls.
The price faced a crucial rejection and started a fresh decline below the $24,000 level. This month, there was a steady decline below the $22,000 support. Recently, the price even settled below the $20,000 level and the 50-day simple moving average (blue).
The first major support is near the $18,500 and $18,400 levels. The main breakdown support sits at $17,600, below which the price could gain bearish momentum. In the stated case, the price may perhaps test the $16,500 support.
On the upside, an immediate resistance is near the $20,000 level. The next key resistance might be near the $22,000 level and the 50 simple moving average (4-hours, blue).
Besides, there is a key bearish trend line in place with resistance at $22,000 on the daily chart. A clear move above the $22,000 resistance could start a steady increase. In the stated case, the price might test the $24,000 resistance. If the bulls push the price above the $23,000 barrier, the price might retest the $25,000 hurdle.
Overall, bitcoin price is showing bearish signs below the $20,000 and $22,000 levels. The current daily chart is signaling a risk of a downside break below $17,600. Conversely, the price might clear hurdles and rise towards the $22,000 resistance zone.
