TA: Bitcoin Price Below 100 SMA Could Spark Bearish Reaction

Aayush Jindal

1 year ago

2 mins read

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Bitcoin is slowly moving lower below $24,500 against the US Dollar. BTC could drop in the short-term if it stays below the 100 hourly SMA.

Bitcoin started a downside correction after it failed to settle above $25,000.
The price is now trading below the $24,500 level and the 100 hourly simple moving average.
There was a break below a key bullish trend line with support near $24,300 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could extend losses below the $23,780 and $23,500 support levels in the short-term.

Bitcoin Price Breaks Support

Bitcoin price attempted another increase above the $24,500 resistance zone. BTC was able to jump above the $25,000 resistance level and traded to a new monthly high.

However, the price failed to stay above the $25,000 level. A high was formed near $25,200 and the price started a downside correction. There was a move below the $24,800 and $24,500 levels. Besides, there was a break below a key bullish trend line with support near $24,300 on the hourly chart of the BTC/USD pair.

Bitcoin price is now trading below the $24,500 level and the 100 hourly simple moving average. A low is formed near $23,789 and the price is now consolidating losses.

There was a minor move above the 23.6% Fib retracement level of the recent decline from the $25,200 swing high to $24,789 low. On the upside, an immediate resistance is near the $24,300 level and the 100 hourly simple moving average.

Source: BTCUSD on TradingView.com

The next key resistance is near the $24,500 zone. It is near the 50% Fib retracement level of the recent decline from the $25,200 swing high to $24,789 low. A close above the $24,500 resistance zone could start another increase. In the stated case, the price may perhaps climb above the $25,000 resistance. Any more gains might send the price towards the $25,800 level.

Dips Limited in BTC?

If bitcoin fails to clear the $24,500 resistance zone, it could continue to move down. An immediate support on the downside is near the $23,780 level.

The next major support now sits near the $23,500 level. A downside break and close below the $23,500 level might spark a sharp decline. In the stated case, the price might drop towards the $22,750 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 just below the 50 level.

Major Support Levels – $23,780, followed by $23,500.

Major Resistance Levels – $24,300, $24,500 and $25,000.

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

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