TA: Bitcoin Holds Strong Above $22K, Why BTC Could Resume Its Rally

Spread the love

Bitcoin price extended its rally above $21,500 and $23,000 against the US Dollar. BTC traded to a new all-time high near $23,215 before correcting gains.

  • Bitcoin started a short-term downside correction after trading as high as $23,715.
  • The price is currently holding the $22,350 support and it is well above the 100 hourly simple moving average.
  • There was a break above a key contracting triangle with resistance near $22,850 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair is likely to resume its upward move as long as it is above the $22,350 support zone.

Bitcoin Price is Forming Key Support Base

Yesterday, there was a massive upward move in bitcoin price above the $20,000 resistance. BTC surged over 20% and it even broke the $22,000 resistance level. The upward move gained pace above the $23,000 level and the price settled well above the 100 hourly simple moving average.

RECOMMENDED READ:  Senator-elect Cynthia Lummis wants to boost Bitcoin's profile when she enters Congress next year

The price traded to a new all-time high at $23,715 before it started a downside correction. There was a break below the $23,000 and $22,800 levels. However, the bulls were able to protect the price from diving below $22,000.

A swing low was formed near $22,263 and the price started forming a base above $22,350. It climbed back above the $22,500 and $22,600 levels. There was also a break above the 50% Fib retracement level of the recent decline from the $23,715 high to $22,263 low.

Bitcoin Price

Source: BTCUSD on TradingView.com

There was also a break above a key contracting triangle with resistance near $22,850 on the hourly chart of the BTC/USD pair. Bitcoin price is now struggling to settle above the $23,000 level.

The first key resistance is near the $23,160 level. It is close to the 61.8% Fib retracement level of the recent decline from the $23,715 high to $22,263 low. A successful close above the $23,160 level could open the doors for a fresh increase towards the $23,700 and $24,000 levels in the near term.

RECOMMENDED READ:  XRP Gains Ground Against Bitcoin as Active Address Count Remains High

Downsides Supported in BTC?

If bitcoin starts another short-term downside correction, it could find support near the $22,500 level. The first key support is near the $22,350 level.

A downside break below the $22,350 support base may possibly spark an extended decline. In the stated case, the price could even decline below the $22,000 support level.

Technical indicators:

Hourly MACD – The MACD is likely to move back into the bullish zone.

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

Major Support Levels – $22,500, followed by $22,350.

Major Resistance Levels – $23,000, $23,160 and $23,700.

 264 Interactions,  2 today

READ ALSO:
Polkadot Market Analysis for 26th January 2021

Polkadot was one of the market's best earners in 2021, with the price action of the cryptocurrency speaking for itself. Read more

Signal messaging service looking into privacy crypto payments options

Fast-rising messaging service Signal is rumored to be experimenting with a privacy crypto token. Privacy-focused chat app Signal is currently Read more

How to avoid U.S. trading hours to save few Ethereum gweis.

Anyone who used Ethereum in 2020 understands the annoyance of paying for gas, a metric that reflects the numerical weight Read more

Leave a Reply

Your email address will not be published. Required fields are marked *

Contact Us

%d bloggers like this: