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TA: Bitcoin Price Bearish Weekly Close Suggests it’s Vulnerable For Bigger Decline

Byharjotsinghjaspal

Aug 22, 2022
Bitcoin
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Bitcoin declined heavily below the $22,000 support zone against the US Dollar. BTC is correcting gains, but upsides might be limited above the $22,500 resistance.

  • Bitcoin extended losses and declined below the $22,000 support.
  • The price is now trading below the $22,000 level and the 100 hourly simple moving average.
  • There is a major bearish trend line forming with resistance near $21,550 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could extend losses if it stays below the $21,500 and $22,000 levels.

Bitcoin Price Dives over 8%

Bitcoin price started a major decline below the $23,000 support zone. BTC gained bearish momentum below the $22,500 and $22,200 support levels.

The decline was such that the price settled below the $22,000 support zone. It even spiked below the $21,000 level and traded as low as $20,797. The price is now correcting losses above the $21,000 level. It is now trading below the $22,000 level and the 100 hourly simple moving average.

Recently, there was a push above the $21,250 level. However, bitcoin price struggled near the 23.6% Fib retracement level of the recent decline from the $24,414 swing high to $20,797 low.

On the upside, an immediate resistance is near the $21,500 level. There is also a major bearish trend line forming with resistance near $21,550 on the hourly chart of the BTC/USD pair. The first major resistance on the upside sits near the $22,000 level and the 100 hourly simple moving average.

Source: BTCUSD on TradingView.com

The main resistance is forming near the $22,650 zone. It is near the 50% Fib retracement level of the recent decline from the $24,414 swing high to $20,797 low. A close above the $22,500 and $22,650 resistance levels might start another increase.

More Losses in BTC?

If bitcoin fails to clear the $22,000 resistance zone, it could continue to move down. An immediate support on the downside is near the $21,250 level.

The next major support now sits near the $20,800 level. A downside break and close below the $20,800 level might spark another sharp decline. In the stated case, the price might decline towards the $20,000 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 above the 50 level.

Major Support Levels – $21,250, followed by $20,800.

Major Resistance Levels – $21,550, $22,000 and $22,650.



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