Bitcoin Price Rally Loses Steam But This Support Might Spark Another Surge

Bitcoin price surged over 15% and cleared the $24,000 resistance. BTC might correct lower, but dips might be supported near the $23,500 zone.

• Bitcoin started a strong increase above the $23,500 resistance zone.
• The price is trading above $24,000 and the 100 hourly simple moving average.
• There is a short-term rising channel forming with support near $24,220 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could correct lower towards the $23,600 and $23,500 support levels.

Bitcoin Price Surges Above $24K

Bitcoin price started a strong increase above the $22,000 resistance zone. BTC gained bullish momentum and was able to clear the $23,500 resistance to move further into a positive zone.

The price is up over 15% and there was a clear move above the $24,000 resistance zone. A high is formed near $24,599 and the price is now consolidating gains. There is also a short-term rising channel forming with support near $24,220 on the hourly chart of the BTC/USD pair.

Bitcoin price is now trading above $24,000 and the 100 hourly simple moving average. It is also well above the 23.6% Fib retracement level of the upward move from the $19,550 swing low to $24,599 high.

Source: An immediate resistance is near the $24,580 level. The next major resistance is near the $24,620 zone. A close above the $24,620 resistance might start a fresh increase towards the $25,000 resistance. The next key resistance is near the $25,200 zone, above which the price might gain bullish momentum and test $26,500.

Dips Limited in BTC?

If bitcoin price fails to clear the $24,620 resistance, it could correct lower. An immediate support on the downside is near the $24,220 zone and the channel lower trend line. The next major support is near the $23,500 zone, below which the price might drop to $22,800. The next major support is near the $22,000 level or the 50% Fib retracement level of the upward move from the $19,550 swing low to $24,599 high. Any more losses might send the price towards the $21,200 level and the 100 hourly simple moving average. 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 – $24,220, followed by $23,500. Major Resistance Levels – $24,620, $25,000 and $25,200.