Key Takeaways:
- Bitcoin price started a strong decline from the $24,000 resistance zone.
- BTC/USD is still holding a key contracting triangle support at $22,000 on the daily chart.
- The price could rise again unless there is a daily close below the $21,350 support.
Bitcoin price declined over $1,500 and tested $22,000 resistance. BTC/USD remains supported for a fresh increase if it stays above $21,350.
Bitcoin Price Revisits Support
In the past few days, bitcoin price made a few attempts to clear the $24,000 resistance zone. The BTC/USD pair failed to settle above the $24,000 level and reacted to the downside.
Today, there was a sharp decline below the $23,280 support zone and the 50-day simple moving average (blue). The price gained pace for a move below the 50% Fib retracement level of the upward move from the $21,354 swing low to $25,227 high.
Bitcoin price daily chart | Source: BTCUSD on TradingView.com
The bears even pushed the price below the $22,500 support. It is down over 5%, similar to Ethereum, BNB, SOL, ADA, and other altcoins.
The price tested the key $22,000 support zone. The price is also holding a key contracting triangle support at $22,000 on the daily chart. It is above the 76.4% Fib retracement level of the upward move from the $21,354 swing low to $25,227 high.
On the upside, an immediate resistance is near the $22,800 level and the 50-day simple moving average (blue). The next key resistance is still near the $24,000 level.
A close above the $24,000 level might send the price toward the $25,200 resistance zone or the last swing high. Any more gains might even push the price above the $26,000 resistance zone. In the stated case, the price might rise toward the $27,500 resistance.
More Pain for BTC?
If there is no upside break above $24,000, the price might decline further. The first major support is near the $22,000 level. The main support is now forming near the $21,350 level, below which the price could gain bearish momentum.
In the stated case, the price may perhaps test the $20,450 support. Any more losses might open the doors for a drop toward the $20,000 level.
Overall, bitcoin price is down a lot from the $24,000 resistance zone. The current price action suggests the bulls are not done yet and they might attempt a fresh increase to $24,000. Conversely, the price may perhaps extend its decline toward the $20,450 support zone.
