Bitcoin Price Indicates Potential Correction, Buy The Dip?

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Bitcoin price started another downward correction below $23,250. BTC remains exposed to further downside risk before the bulls appear near $22,200 or $22,000.

Bitcoin started a downside correction and traded below the $23,500 area. The price is trading below $23,200 and the 100 hourly simple moving average. There was a break below a key uptrend line with support near $23,000 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair could drop further towards the $22,000 support unless it breaks above $23,250. Bitcoin price begins correction

Bitcoin price accelerated to move above the $23,500 resistance zone. BTC even surged above $23,800 but struggled to clear the $24,000 resistance zone.

A new swing high was formed near $23,950 and the price corrected lower. There was a clear move below the $23,500 and $23,200 support levels. Additionally, there was a break below a key uptrend line with support near $23,000 on the hourly chart of the BTC/USD pair.

A bottom forms near $22,519 and the price is now correcting losses. Bitcoin price is now trading below $23,200 and the 100 hourly simple moving average.

It is trading just above the 23.6% Fib retracement level of the recent decline from the $23,950 high to $22,519 low. An immediate resistance is near the $23,000 level. The next major resistance is near the $23,200 area or the 100 hourly simple moving average.

Source: BTCUSD on TradingView.com

The 50% Fib retracement level of the recent decline from the $23,950 high to $22,519 is also near the $23,250 area, above which the price may begin a strong rise. In the indicated case, the price could possibly rise towards the $23,650 level. The next resistance could be near the $24,000 level. Any further gains could send the btc price towards the $25,000 level.

More disadvantages in BTC?

If bitcoin price fails to clear the $23,250 resistance, it could continue its downward correction. Immediate support on the downside is seen near the $22,650 area.

The next major support is near the $22,500 area. A break down below the $22,500 level could send the price towards the $22,200 level. Any further losses could push the price up to $22,000 in the short term.

Technical indicators:

Hourly MACD The MACD is now losing momentum in the bearish zone.

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

Main support levels $22,500, followed by $22,200.

Major resistance levels $23,000, $23,250 and $23,800.

Sources

1/ https://Google.com/

2/ https://news.google.com/__i/rss/rd/articles/CBMiRGh0dHBzOi8vd3d3Lm5ld3NidGMuY29tL2FuYWx5c2lzL2J0Yy9iaXRjb2luLXByaWNlLWNvcnJlY3Rpb24tMjJrLTIv0gFIaHR0cHM6Ly93d3cubmV3c2J0Yy5jb20vYW5hbHlzaXMvYnRjL2JpdGNvaW4tcHJpY2UtY29ycmVjdGlvbi0yMmstMi9hbXAv?oc=5

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