Bitcoin Price Forms Bullish Breakout Pattern, Why Trend Remains Positive

Key Takeaways:

  • Bitcoin price started a downside correction from the $24,250 zone.
  • BTC/USD is following a bullish flag with resistance near $22,500 on the 4-hours chart.
  • There could be a fresh rally if there is a clear move above the $22,500 resistance.
bitcoin, Bitcoin Price Forms Bullish Breakout Pattern, Why Trend Remains Positive
Bitcoin Price Forms Bullish Breakout Pattern | Photo by Quantitatives on Unsplash

Bitcoin price remains in a positive zone above $21,000. BTC/USD could start another increase if it clears the $22,500 resistance zone.

Bitcoin Price Remains Supported

This past week, bitcoin price started a steady increase above the $21,000 resistance against the US Dollar. The BTC/USD pair gained pace for a move above the $22,000 level and the 50 simple moving average (4-hours, blue).

The bulls even pumped the price above the $23,500 zone. A high was formed near $24,276 and the price is now correcting lower. There was a move below the $23,500 and $23,000 levels.

Bitcoin 4-hours chart
Bitcoin 4-hours chart | Source: BTCUSD on TradingView.com

The price traded below the 23.6% Fib retracement level of the upward move from the $18,912 swing low to $24,276 high. It is now trading below the $22,000 level and the 50 simple moving average (4-hours, blue).

It seems like the price is following a bullish flag with resistance near $22,500 on the 4-hours chart. An initial support is near the $21,600 level. It is near the 50% Fib retracement level of the upward move from the $18,912 swing low to $24,276 high.

The next major support is near the $21,000 and $20,950 levels, below which the price could take a hit and accelerate lower. In the stated case, the price may perhaps decline below the $20,180 support. Any more losses could send the price to a new multi-month low below $19,000.

Conversely, bitcoin price could stay above the $21,000 support zone and start a fresh increase. On the upside, an immediate resistance is near the $22,250 level.

The next key hurdle could be near the channel resistance trend line and $22,500. A clear move above the $22,500 resistance could send the price towards the $23,500 resistance. Any more gains might set the pace for a move towards the $24,250 resistance zone.

Overall, bitcoin price is correcting gains from the $24,250 resistance zone. It is now trading below $22,500 and the 50 simple moving average (4-hours, blue). However, it seems to be following a bullish pattern and might start a fresh increase above $22,500. If not, it might continue to move down and trade below the $21,000 support in the coming sessions.

close
bitcoin, Bitcoin Price Forms Bullish Breakout Pattern, Why Trend Remains Positive

Subscribe Today
for our Weekly Newsletter

Free Weekly Crypto News without the spam.

Related Articles

Our Partners

SwapCoin.com RapidCoin.com ChangeNOW.com Paybis.com WestcoastNFT.com