Bitcoin price could narrowly avoid a major downtrend, here’s how

Bitcoin extended losses below the $22,650 support against the US dollar. BTC is attempting another recovery and may face hurdles near $23,100.

• Bitcoin remained in a bearish zone and extended losses below the $23,500 level.
• The price is now trading below the $23,000 level and the 100 hourly simple moving average.
• There was a break above a short-term bearish trend line with resistance near $22,850 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair needs to clear the $23,100 resistance to start a steady rally in the short term.

Bitcoin price faces resistance

Bitcoin price started another decline after it encountered sellers near the $23,570 level. The price gained bearish momentum after it breached the $23,000 support zone.

It even traded below the $22,800 level and the 100 hourly simple moving average. Finally, there was a top below the $22,650 level. However, downside was limited and the price traded as low as $22,400. The price started a new recovery wave above the $22,800 resistance zone.

Bitcoin cleared the 23.6% Fib retracement level for the downward move from the $23,570 swing high to the $22,400 low. Also, there was a break above a short-term bearish trend line with resistance near $22,850 on the hourly chart of the BTC/USD pair.

It is now trading below the $23,000 level and the 100 hourly simple moving average. On the upside, bitcoin price is facing resistance near the $23,000 level and the 100 hour SMA.

Source: BTCUSD on TradingView.com

The 50% Fib retracement level for the downward move from the $23,570 swing high to the $22,400 low is also near the $23,000 zone. The next key resistance is near the $23,300 zone. A close above the $23,500 resistance zone could start a steady rally. In the indicated case, the price might rise and clear the $23,500 resistance.

More losses in BTC?

If bitcoin fails to clear the $23,000 resistance zone and the 100 hour SMA, it may continue to move lower. An immediate support on the downside is near the $22,800 level.

The next major support is now near the $22,400 level. A close below the $22,400 level could initiate a move towards $22,000. Any further losses could send the price towards the $21,200 level.

Technical indicators:

Hourly MACD – MACD is now picking up speed in the bullish zone.

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

Major support levels – $22,800, followed by $22,400.

Major resistance levels – $23,000, $23,300 and $24,500.