Bitcoin Price Holds Key Support But 100 SMA Is The Key To Recovery

Bitcoin price is consolidating above the $21,500 support. BTC could start a decent recovery if it clears the $22,000 resistance and the 100 hourly SMA.

• Bitcoin is struggling to start a recovery wave above the $22,000 resistance.
• The price is trading below $22,200 and the 100 hourly simple moving average.
• There was a break above a key bearish trend line with resistance near $21,900 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could continue to move down if it stays below the $22,000 resistance zone.

Bitcoin Price Continues to Struggle

Bitcoin price extended its decline below the $22,200 support zone. BTC even broke the $22,000 support zone and settled below the 100 hourly simple moving average.

The price traded towards the $21,500 support zone. A low is formed near $21,475 and the price is now consolidating losses. There was a minor recovery wave above the $21,800 resistance zone. Besides, there was a break above a key bearish trend line with resistance near $21,900 on the hourly chart of the BTC/USD pair. Bitcoin price spiked above the 23.6% Fib retracement level of the downward move from the $23,450 swing high to $21,475 low. It is now trading below $22,200 and the 100 hourly simple moving average.

An immediate resistance is near the $22,000 level and the 100 hourly simple moving average. The next major resistance is near the $22,200 zone. The main resistance is now near the $22,500 zone or the 50% Fib retracement level of the downward move from the $23,450 swing high to $21,475 low.

Source: A clear move above the $22,500 resistance might start a steady increase. In the stated case, the price may perhaps rise towards the $22,850 level. The next resistance could be near the $23,000 level, above which btc price might rise towards the $23,450 resistance zone.

More Losses in BTC?

If bitcoin price fails to clear the $22,000 resistance, it could continue to move down. An immediate support on the downside is near the $21,650 zone. The next major support is near the $21,500 level, below which the price might start major decline. In the stated case, the price could decline towards the $20,500 zone. Technical indicators: Hourly MACD – The MACD is now losing pace in the bearish zone. Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level. Major Support Levels – $21,500, followed by $21,200. Major Resistance Levels – $22,000, $22,200 and $22,500.