In the past few days, there was a steady rise in bitcoin price above the $20,000 resistance against the US Dollar. The BTC/USD pair broke many hurdles near $22,000 and $23,000 to extend its rally.
During the recent increase, there was a break above a key contracting triangle with resistance near $23,100 on the 4-hours chart of the BTC/USD pair. The pair climbed above the $24,000 resistance and settled well above the 100 simple moving average (4-hours).
A new all-time high was formed near $24,260 and the price is currently correcting lower. There was a break below the $23,500 support level. The price even tested the 50% Fib retracement level of the recent increase from the $22,320 swing low to $24,260 swing high.
Bitcoin is approaching a couple of key supports near the $23,000 level. The 61.8% Fib retracement level of the recent increase from the $22,320 swing low to $24,260 swing high might also act as a support at $23,060.
The next major support is near the $22,780 level. Any more losses could lead the price towards the $22,320 swing low or even $22,000.
More Upsides in BTC?
Once the current correction wave is complete in bitcoin, it could start a fresh increase from $23,000 or $22,000. An initial resistance on the upside is near the $23,650 level.
The first major resistance is near the $24,000 level. A clear break above the $24,000 resistance level could open the doors for a new all-time high above $24,260.
4 hours MACD – The MACD for BTC/USD is slowly losing momentum in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is correcting lower towards the 60 level.
Major Support Level – $23,000
Major Resistance Level – $24,000