Key Takeaways:
- Bitcoin price started a downside correction from the $25,200 level.
- BTC/USD is following a key bullish trend line with current support at $23,250 on the 4-hours chart.
- There could be a fresh increase if the price stays above the trend line and $23,000.
Bitcoin price is holding gains above $23,000. BTC/USD could consolidate in the short-term before the bulls attempt another increase.
Bitcoin Price Eyes More Upsides
This past week, bitcoin price gained pace above the $23,250 resistance against the US Dollar. The BTC/USD pair was able to climb above the $24,000 level and the 50 simple moving average (4-hours, blue).
The bulls even pushed the price above the $24,550 resistance zone. Finally, there was a move above the $25,000 level and a new multi-week high was formed near $25,205. Recently, there was a downside correction below the $25,000 level.
Bitcoin 4-hours chart | Source: BTCUSD on TradingView.com
There was a move below the $24,600 and $24,500 levels. The price traded below the 23.6% Fib retracement level of the upward wave from the $22,650 swing low to $25,205 high. It is now trading near the $24,000 support and the 50 simple moving average (4-hours, blue).
It seems like the 50% Fib retracement level of the upward wave from the $22,650 swing low to $25,205 high is also acting as a support. The next major support is near the $23,250 and $23,200 levels.
There is also a key bullish trend line in place with support at $23,250 on the 4-hours chart. The main breakdown support sits at $23,000, below which the price could take a hit and accelerate lower. In the stated case, the price may perhaps decline below the $22,650 support. Any more losses could send the price to the $22,000 support.
Conversely, bitcoin price could stay above the $23,250 support zone and start another increase. On the upside, an immediate resistance is near the $24,250 level.
The next key resistance might be near the $24,600 levels. A clear move above the $24.600 resistance could send the price towards the $25,000 resistance. Any more gains might set the pace for a move towards the $25,850 resistance zone.
Overall, bitcoin price is correcting gains from the $25,200 resistance zone. It is now trading below $24,250, but it is above the 50 simple moving average (4-hours, blue). If there is no downside break below the $23,000 zone, the price might start a fresh increase. Conversely, there could be a drop towards the $22,000 support.
