Bitcoin formed a bottom near the $21,000 level. BTC is attempting a recovery wave, but the bears can hold on to gains above $23,000, according to technical analysis by NewsBTC’s Aayush Jindal.
Bitcoin Remains in Downtrend
Bitcoin dropped below $21,000 and formed a bottom around $20.824. BTC is currently attempting an upside correction. There was a move above the $22,000 resistance level. However, the price is still well below the $24,000 level and the 100 hourly simple moving average. There is also a key bearish trend line forming with resistance near $22.050 on the hourly chart of
BTC/USD. The first major resistance is near the $22,600 level. This is near the 23.6% Fib retracement level of the downward move from the $28,300 high to $20.825 high. If there is a clear move above the trendline, the pair could rally towards the $23,000 resistance.
The main resistance is near the $24,600 level. This is close to the 50% Fib retracement level of the downside move from the $28,300 high to $20,825 high. A clear move above the $24,500 and $25,000 levels could set the pace for a strong upward move.
Will Bitcoin Drop More?
Jindal says that if Bitcoin fails to break past the $22,600 resistance zone and trendline, it could start a fresh decline. An immediate support is near the $21,250 level. The next major support is near the $21,000 level. A downside break below the $21,000 support could send the price towards the $20,825 low. Further losses may require a new test of perhaps $20,000.
What Do Technical Indicators Say?
- Hourly MACD – The MACD is now losing momentum in the bearish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is still below the 50 level.
- Major Support Levels – 21,250 then $21,000
- Major Resistance Levels – 22,100, 22,600 and $23,000
