Key Takeaways:
- Bitcoin price started a downside correction from the $24,720 zone.
- BTC/USD might test a key bullish trend line at $22,000 on the 4-hours chart.
- There could be a fresh increase if the price stays above the $22,000 support.
Bitcoin price is slowly moving lower below $23,200. BTC/USD could start another increase if it remains stable above the $22,000 support.
Bitcoin Price Approaches Support
This past week, bitcoin price started a steady increase above the $22,000 resistance against the US Dollar. The BTC/USD pair gained pace for a move above the $23,000 level and the 50 simple moving average (4-hours, blue).
The bulls even jumped the price above the $24,000 zone. A high was formed near $24,736 and the price is now correcting lower. There was a move below the $24,200 and $22,000 levels.
Bitcoin 4-hours chart | Source: BTCUSD on TradingView.com
The price traded below the 23.6% Fib retracement level of the key increase from the $20,738 swing low to $24,736 high. It is now trading near the $22,850 support and testing the 50 simple moving average (4-hours, blue).
The 50% Fib retracement level of the key increase from the $20,738 swing low to $24,736 high is also near the $22,850 zone to act as a support.
The next major support is near the $22,200 and $22,000 levels. There is also a key bullish trend line in place with support at $22,000 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 $20,950 support. Any more losses could send the price to the $20,000 handle.
Conversely, bitcoin price could stay above the $22,000 support zone and start a fresh increase. On the upside, an immediate resistance is near the $23,250 level.
The next key resistance might be near the $23,850 and $24,000 levels. A clear move above the $24,000 resistance could send the price towards the $24,730 resistance. Any more gains might set the pace for a move towards the $25,500 resistance zone.
Overall, bitcoin price is correcting gains from the $24,730 resistance zone. It is now trading below $23,500 and the 50 simple moving average (4-hours, blue). However, there is a major support waiting near the $22,000 zone. If the bulls fail to protect the trend line support, the price could trade below the $20,950 support in the coming sessions.
