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 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 | 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.
