Bitcoin

Bitcoin Price Reaches Key Juncture, Can This Support Spark Fresh Increase?

More Pain for BTC? | Photo by Traxer on Unsplash

New Delhi(CoinChapter.com): Bitcoin price is declining below $22,500. BTC/USD might increase significantly if it stays above the $21,400 support and climbs above $22,700.

Bitcoin Price Extends Decline

After struggling to stay above the $24,000 level, bitcoin prices started declining. Next, the BTC/USD pair traded below the $23,000 support zone to start a steady decline.

There was a clear move below the $22,700 support zone, sparking a short-term downtrend. Recently, there was a push below the $22,000 support and the 50 simple moving average (4 hours, blue), similar to ethereum, Cardano, and dot.

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

The price even tested the $21,400 support zone. A low is formed near $21,444, and the price is now showing bearish signs below $21,700.

On the upside, immediate resistance is near the $22,120 level. It is close to the 23.6% Fib retracement of the recent decline from the $24,240 swing high to the $21,444 low. The first major resistance is near the $22,400 level or the 50 simple moving average (4 hours, blue).

Bitcoin price is also facing a major bearish trend line with resistance near $22,420 on the 4-hours chart. The next major resistance is near the $22,850 zone.

It coincides with the 50% Fib retracement of the recent decline from the $24,240 swing high to the $21,444 low. A close above the $22,850 level might start a strong increase toward the $23,580 level. Any more gains might send the price toward the $24,200 resistance zone in the coming days.

More Pain for BTC?

On the downside, the first major support is near the $21,400 level. The next key support sits near the $21,250 level. A clear move below the $21,250 support could spark a bearish move.

The next major support is near the $20,400 zone, where the bulls could take a strong stand. However, if they fail, there is a risk of a move toward the $18,800 support zone. 

The bitcoin price shows a few bearish signs and is trading below $22,000. If BTC fails to stay above the $21,400 support zone, there is a risk of a downside extension toward $20,400 or even $20,000. Conversely, the price might remain well bid and start a fresh increase towards $22,850.

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