The price of bitcoin had difficulty breaking through the $23,650 and $23,950 resistance levels. After reaching a high of $23,977, bitcoin saw a precipitous drop in value. It has dropped by more than five percent, and there was a distinct movement below the $23,200 support level.
The bears were successful in driving the price down below the support zone at $22,500 as well as the 100 hourly simple moving average. Even the $22,000 support zone was challenged by the price. Around $22,000 has proven to be a support zone, and prices are now consolidating their recent losses. It is now trading at a price that is much lower than $23,020 and the 100 hourly simple moving average.
An immediate barrier may be seen in the vicinity of the $22,450 zone. It is now trading close to the 23.6% Fib retracement level of the decline that began with a swing high of $23,977 and ended with a low of $22,000.
The first significant obstacle is located close to the $22,800 zone. The primary source of opposition is now located close to the $23,000 zone. It is quite near to the 50% Fib retracement level of the decline that began with a swing high of $23,977 and ended with a low of $22,000. In the hourly chart of the BTC/USD pair, there is also a crucial negative trend line that is forming, and it is meeting resistance around $23,220.
A decisive move that takes the price over the $23,220 barrier might signal the beginning of a continuous ascent above the $24,650 resistance zone. If the price is able to rise over the $24,000 zone, then the market is likely to enter a bullish zone. The next significant barrier is located in this zone.
If the price of bitcoin is unable to break through the resistance level of $22,800, then it is possible that it could start another slide. The region around the $22,200 zone provides short-term support for the market.
The next significant support is located close to the $22,000 zone, and if it is broken, the bears may gather momentum and drive the price down to $21,200. The region close to $21,000 is the next important area of support.