Bitcoin price extended its rally above USD 21,500 and USD 23,000 against the US dollar. BTC traded to a new all-time high near $ 23,215 before correcting gains.
- Bitcoin started a short term downside correction after trading as low as $ 23,715.
- The price is currently holding the USD 22,350 support and well above the 100 easy hourly moving average.
- There was a break above a major contractile triangle with resistance near USD 22,850 on the hourly chart of the BTC / USD pair (Kraken data feed).
- The pair is likely to resume its upward movement as long as it remains above the USD 22,350 support zone.
Bitcoin price is an important support base
There was one yesterday massive upward movement in bitcoin price above the USD 20,000 resistance. BTC was up more than 20% and even broke the USD 22,000 resistance level. The upward movement gained momentum above the USD 23,000 level and the price was well above the 100 simple hourly moving average.
The price traded to a new all-time high of $ 23,715 before starting a downward correction. There was a break below the USD 23,000 and USD 22,800 levels. However, the bulls were able to protect the prize from dives below $ 22,000.
A swing low formed at $ 22,263 and the price started to build a base above $ 22,350. It climbed back above the USD 22,500 and USD 22,600 levels. There was also a break above the 50% Fib retracement level from the recent drop from the high of $ 23,715 to the low of $ 22,263.
Source: BTCUSD on TradingView.com
There was also a break above a major contracting triangle with resistance at $ 22,850 on the hourly chart of the BTC / USD pair. Bitcoin price is now struggling to rise above the USD 23,000 level.
The first major resistance is near the USD 23,160 level. It is close to the 61.8% Fib retracement level of the recent drop from the high of $ 23,715 to the low of $ 22,263. A successful close above USD 23,160 could open the doors for one new increase towards the USD 23,700 and USD 24,000 levels in the near term.
Downsides supported in BTC?
If bitcoin starts another short-term downside correction, it could find support near the USD 22,500 level. The first major support is near the USD 22,350 level.
A downward break below the USD 22,350 support base could potentially lead to a long-term decline. In the case mentioned, the price may even fall below the USD 22,000 support level.
Hourly MACD – The MACD is likely to move back into the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC / USD is currently well above the 50 level.
Key Support Levels – USD 22,500, followed by USD 22,350.
Major Resistance Levels – USD 23,000, USD 23,160 and USD 23,700.