Key Takeaways:
- Bitcoin price started a downside correction from the $24,900 zone.
- BTC/USD is well supported above a key bullish trend line at $23,000 on the 4-hours chart.
- There could be a fresh increase if the price stays above the $23,400 support.
Bitcoin price is showing positive signs above $23,400. BTC/USD could dip in the short-term, but the bulls might remain active above $23,000.
Bitcoin Price Remains Supported
This week, bitcoin price started a steady increase above the $23,000 resistance against the US Dollar. The BTC/USD pair gained pace for a move above the $23,400 level and the 50 simple moving average (4-hours, blue).
The bulls even pushed the price above the $24,300 zone. A high was formed near $24,900 and the price is now correcting lower. There was a move below the $24,400 and $24,200 levels.
Bitcoin 4-hours chart | Source: BTCUSD on TradingView.com
The price traded below the 23.6% Fib retracement level of the recent rise from the $22,650 swing low to $24,900 high. It is now trading near the $23,775 support and is well above the 50 simple moving average (4-hours, blue).
The 50% Fib retracement level of the recent rise from the $22,650 swing low to $24,900 high is also near the $22,775 zone to act as a support.
The next major support is near the $23,200 and $23,000 levels. There is also a key bullish trend line in place with support at $23,000 on the 4-hours chart, below which the price could take a hit and accelerate lower.
In the stated case, the price may perhaps decline below the $23,000 support. Any more losses could send the price to the $22,000 pivot region.
Conversely, bitcoin price could stay above the $23,400 support zone and start a fresh increase. On the upside, an immediate resistance is near the $24,300 level.
The next key resistance might be near the $24,900 and $25,000 levels. A clear move above the $25,000 resistance could send the price towards the $25,850 resistance. Any more gains might set the pace for a move towards the $26,500 resistance zone.
Overall, bitcoin price is correcting gains from the $24,900 resistance zone. It is now trading below $24,500, but it is above the 50 simple moving average (4-hours, blue). If remain active above $23,400, the price might start a fresh increase. Conversely, there could be a drop towards the $23,000 support.
