Bitcoin price rises 10%, but this resistance is key to reversal

  • Bitcoin started a strong increase above the $21,500 resistance.
  • The price is above $22,000 and the 100 hourly simple moving average.
  • There was a break above a major bearish trend line with resistance near $21,250 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair is likely to face strong selling interest near $22,600 and $22,800.

Bitcoin price soars above $22,000

Bitcoin price found strong support near the $19,500 area. BTC formed a base and started a sharp rise above the $20,000 resistance.

It is clearly above the $20,500 and $21,200 resistance levels. Moreover, there was a break above a major bearish trend line with resistance near $21,250 on the hourly chart of the BTC/USD pair. The pair even broke the $21,500 resistance.

Bitcoin price is above $22,000 and the 100 hourly simple moving average. A high was formed near $22,765 and the price is now correcting lower.

It is trading well above the 23.6% Fib retracement level of the $22,765 swing low to $22,765 swing low. Immediate resistance is near $22,600. The next major resistance is near the $22,800 area.

Source: BTCUSD on TradingView.com

A close above the $22,800 resistance could start a sharp increase in the coming days. The next key resistance is around the $23,200 area, above which the price could gain bullish momentum and test $24,000.

Is BTC Supporting the Fall?

If bitcoin price fails to clear the $22,600 resistance, it could turn lower. An immediate support on the downside is around the $22,000 area.

The next major support is near the $21,750 area, below which is the 50% Fib retracement level of a possible decline to $21,150 or a rise from the $19,549 swing low to $22,765 high. The next major support is near $20,800 and the 100 hourly simple moving average. Any more losses could push the price towards the $20,000 level.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now in the overbought zone.

Major Support Levels – $22,000, then $21,750.

Major resistance levels – $22,600, $22,800 and $23,200.

Information source: compiled from NEWSBTC by 0x information.Copyright belongs to the author, without permission, may not be reproduced

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