TA: Bitcoin Price Struggles Below $25K, Signs of Double Top Emerges

Bitcoin failed to clear the $25,000 resistance zone against the US Dollar. BTC is declining and might break the $23,250 support zone.

Bitcoin attempted a clear move towards the $25,000 resistance but failed.
The price is now trading below the $24,000 level and the 100 hourly simple moving average.
There was a break below a key bullish trend line with support near $23,750 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair must clear the $24,200 resistance to continue higher in the near term.

Bitcoin Price Signals Breakdown

Bitcoin price gained pace above the $23,500 resistance zone. There was a clear move above the $24,000 level and the price even broke the $24,500 level.

It attempted a clear move towards the $25,000 resistance but failed. A high was formed near $24,670 and the price started a fresh decline. There was a move below the $24,200 and $24,000 support levels to move into a short-term bearish zone.

Bitcoin declined below the 23.6% Fib retracement level of the upward move from the $20,696 swing low to $24,670 high. Besides, there was a break below a key bullish trend line with support near $23,750 on the hourly chart of the BTC/USD pair.

The price is now trading below the $24,000 level and the 100 hourly simple moving average. The bulls are now protecting more losses below the $23,250 level.

On the upside, the price is facing resistance near the $23,750 level and the 100 hourly simple moving average. The next key resistance is near the $24,200 zone. It also seems like there is a double top pattern forming with resistance near the $24,200 level.

Source: BTCUSD on TradingView.com

A close above the $24,200 resistance zone could set the pace for a fresh increase. In the stated case, the price may perhaps rise towards the $24,750 level. The next major resistance sits near the $25,000 level.

More Losses in BTC?

If bitcoin fails to clear the $24,200 resistance zone, it could start a downside correction. An immediate support on the downside is near the $23,240 level.

The next major support now sits near the $22,750 level. It is near the 50% Fib retracement level of the upward move from the $20,696 swing low to $24,670 high. Any more losses might send the price towards $22,000 level.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

Major Support Levels – $23,240, followed by $22,800.

Major Resistance Levels – $23,750, $24,000 and $24,200.

By

Leave a Reply

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