2022 is going to be a tough year for Bitcoin, with valuations taking a heavy hit.
Given the prevailing duration and scale of capital destruction, it is reasonable to assume that 2022 is the most significant bear market in the history of digital assets. This year, Bitcoin players are always concerned about: will there be new increase in BTC?
Now let’s turn our attention to the current bitcoin situation:
The bitcoin price is gaining pace above the $23,500 resistance level against the US dollar. If it stays above the $23,500 pivot level, BTC could start a new increase.
- Bitcoin has started a decent rally above the $23,500 level.
- The price is now trading above the $23,500 level and the 100-hour simple moving average.
- On the hourly chart of the BTC/USD pair, there is a key Bullish Trend Line forming support around $23,500.
- The pair must clear resistance at $24,000 in order to start a new rally in the near term.
BTC Price has Support
Bitcoin price stabilized above the $23,000 and $23,200 levels. The price formed a base above the $23,200 level and started a new growth.
There was a significant move above the resistance zone of $23,500. The bulls were capable of pushing the price above the $24,000 resistance zone and there was a close above the 100-hour simple moving average. There was a spike to over $24,200.
A high was formed around $24,285 and now the price is correcting lower. There was a break below the $24,000 level. Bitcoin price fell below the 23.6% Fib retracement level of the upside move from the $22,845 oscillator low to the $24,285 high.
The price, however, remains stable above the $23,600 level. There is also a key Bullish Trend Line forming support around $23,500 on the hourly chart of the BTC/USD pair(data from Kraken).
On the upside, immediate resistance is around the $24,000 level. The next key resistance is around the $24,200 area. If the closing price is above the $24,200 resistance area, a steady rise may begin. In the scenario described, the price could rise to resistance at $25,000.
Downside Breakout for BTC?
If Bitcoin fails to break above the $24,000 resistance zone, it could begin a downside correction. Immediate support on the downside is around the $23,600 level.
The next major support is now located near the $23,500 level. It is close to the 50% Fib retracement level of the swing low from $22,845 to the high of $24,285. A close below the $23,500 level could start a move to $23,000. Any more losses could send the price towards the $22,500 level.
Technical Indicators:
Hourly MACD – MACD is now gaining pace in bullish territory.
Hourly RSI (Relative Strength Index) – BTC/USD’s RSI is now above the 50 level.
Major support – $23,600, followed by $23,500.
Major resistance levels – $24,000, $24,200 and $24,500.
