Bitcoin Price Fails Again, What Could Trigger A Nasty Correction

Bitcoin price failed again to clear the $25,000 resistance. BTC is moving lower and might soon test the $23,000 support zone.

• Bitcoin is still facing many hurdles near the $25,000 resistance zone.
• The price is trading below $24,400 and the 100 hourly simple moving average.
• There was a break below a major bullish trend line with support near $24,350 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could decline sharply if there is a clear move below the $23,000 support zone.

Bitcoin Price Corrects Lower

Bitcoin price attempted another upside break above the $25,000 resistance zone. However, BTC bears were active near the $25,000 zone. A high was formed near $25,120 before the price started a fresh decline.

There was a clear move below the $24,800 and $24,500 levels. The price declined below the 76.4% Fib retracement level of the upward wave from the $23,868 swing low to $25,118 high. Besides, there was a break below a major bullish trend line with support near $24,350 on the hourly chart of the BTC/USD pair.

Bitcoin price is now trading below $24,400 and the 100 hourly simple moving average. It is slowly approaching the last swing low near $23,868.

On the upside, an immediate resistance is near the $24,200 level. The next major resistance is near the $24,600 zone and the 100 hourly simple moving average. A clear move above the $24,600 resistance might send the price towards the key $25,000 resistance zone.

Source: A close above the $25,000 resistance is must for a steady increase. In the stated case, the price may perhaps rise towards the $26,200 level.

More Losses in BTC?

If bitcoin price fails to clear the $24,600 resistance, it could continue to move down. An immediate support on the downside is near the $23,850 zone. The next major support is near the $23,000 zone or the 1.618 Fib extension level of the upward wave from the $23,868 swing low to $25,118 high. If there is a downside break, the price might decline towards $22,200. The next major support is near the $22,000 level. Technical indicators: Hourly MACD – The MACD is now gaining pace in the bearish zone. Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level. Major Support Levels – $23,850, followed by $23,000. Major Resistance Levels – $24,200, $24,600 and $25,000.