Bitcoin Dips Below $23K, Why Buyers Are Still Comfortable

Bitcoin price came under pressure after ripple’s XRP massive decline below $0.3000 against the US Dollar. BTC traded below $23,000, but it is still well above the $22,000 support.

  • Bitcoin started a fresh decline after it failed to clear the $24,000 resistance zone.
  • The price is currently trading below the $23,000 support and the 100 hourly simple moving average.
  • There was a break below a major bullish trend line with support near $23,350 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair is likely to remain well supported on the downside near $22,350 and $22,000.

Bitcoin Price is Slowly Declining

There was another attempt by bitcoin price to clear the $24,000 resistance level. However, BTC struggled to gain momentum and started a fresh decline from the $24,086 swing high.

There was a break below the $23,500 and $23,250 support levels. There was also a break below a major bullish trend line with support near $23,350 on the hourly chart of the BTC/USD pair. The decline gained pace below $23,000 and the price settled below the 100 hourly simple moving average.

It traded as low as $22,629 and it is currently correcting higher. An initial resistance is near the $22,950 level. It is close to the 23.6% Fib retracement level of the recent decline from the $24,081 high to $22,629 low.

Bitcoin Price

Source: BTCUSD on TradingView.com

There is also a bearish trend line forming with resistance near $23,000 on the same chart. The next major resistance is near the $23,360 level and the 100 hourly simple moving average. The 50% Fib retracement level of the recent decline from the $24,081 high to $22,629 low is also near $23,360.

Bitcoin price must break the trend line and then gain pace above the $23,360 to start a fresh increase. The main hurdle for the bulls is still near the $24,000 zone.

More Losses in BTC?

If bitcoin fails to clear the $23,000 and $23,360 resistance levels, there is a risk of more downsides. An initial support on the downside is near the $22,650 zone.

The first major support is near the $22,350 level. The main support is still near the $22,000 level, below which there is a risk of a sustained downward move in the coming sessions.

Technical indicators:

Hourly MACD – The MACD is gaining momentum in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently well below the 50 level.

Major Support Levels – $22,350, followed by $22,000.

Major Resistance Levels – $23,000, $23,360 and $24,000.

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