Bitcoin gained momentum and rose above the USD 22,000 resistance. BTC is correcting gains, but dips may be limited below $21,500.
- Bitcoin managed to clear the $21,200 and $21,500 resistance levels.
- The price is now trading above $21,500 and above the 100 hourly simple moving average.
- There is a key bullish trend with support near $21,600 on the hourly chart of the BTC/USD pair (data input from Kraken).
- The pair is taking profit, but dips may be limited below $21,500.
Bitcoin price starts a hot rally
Bitcoin price has just bid well above $20,000 and started a new rally. There was a clear move above the $21,000 and $21,200 resistance levels.
The price broke above the $21,500 resistance and rose above the $22,000 resistance. A high was formed around $22,347 and the price has recently started a downward correction. There was a move below the $22,000 and $21,850 levels.
Bitcoin price traded below the 23.6% Fib retracement level from the $21,180 low to $22,347 high. It is now trading above $21,500 and at the 100 hourly simple moving average. Additionally, there is a key bullish trend forming with support around $21,600 on the hourly chart of the BTC/USD pair.
Source: BTCUSD on TradingView.com
On the downside, immediate resistance is near the $22,000 level. The next major resistance sits near the $22,350 level. A clear move above the $22,350 resistance could initiate another sustained rally. In this case, the price will probably increase to 22,800 dollars. Any further gains could send the price towards the $23,200 resistance zone.
Dips Limited in BTC?
If Bitcoin fails to gain momentum above the $22,000 zone, a downward correction may begin. Immediate support is near the $21,700 zone.
The 50% Fib retracement level from the swing low of $21,180 to the high of $22,347 is also near $21,700. The first major support is now forming around the $21,600 level. A downside risk below the $21,600 level could send the price towards the $21,200 support.
Technical indicators:
Hourly MACD – MACD is now accelerating in the hidden zone.
Hourly RSI (Relative Strength Index) – The BTC/USD RSI is now above the 50 level.
Main support levels – $21,700, then $21,600.
Major resistance levels – $22,000, $22,350 and $23,200.