Short-term analysis of Bitcoin price: continuation of the downward trend or price return?
Bitcoin has made several attempts to return above the $24,000 resistance since yesterday. Now, if the buyers continue to fail to push the price above $23,250, Bitcoin may start a new downward movement towards $22,000.
To Report News BTC, Bitcoin on July 30 (August 8) started a continuous downward movement from above the $24,000 level, which led to the price falling below the $23,500 and $23,250 supports.
Further, with the breaking of the 100-hour simple moving average support (SMA 100 – red line in the picture), the price fell to the 50% Fibonacci retracement level. In this analysis, Fibonacci levels are set based on the upward movement of the price from $20,695 to the peak of $24,761. As can be seen in the chart below, the price is currently hovering below $23,000 and below the 100-hour simple moving average.
A downtrend line on Bitcoin’s hourly chart has formed resistance near $23,250, and buyers seem to have held the $22,680 support for themselves so far.
If the market rises, the first resistance in front of Bitcoin will be the same level of $23,250, which is formed near the downward trend line on the chart and the 100-hour simple moving average.
The next key resistance could be near $24,180. The crossing and closing of the price candle above this level may also be associated with an increase in the upward momentum of the price. After that, Bitcoin will have a chance to rise to the $24,650 level and the $25,000 resistance.
Conversely, if Bitcoin fails to break through the $23,250 resistance, the first support in front of the price level will be $22,680.
The next key support is near $22,210 and the 61.8% Fibonacci retracement level, and a continuation of the downward trend may lead to a drop in the price of Bitcoin to $22,000.
The MACD is accelerating in the bearish range and the Relative Strength Index (RSI) is below the middle axis at the 50 level.
As mentioned, $22,680 and $22,210 are key supports for Bitcoin, and $23,250, 23,520, and 24,180 serve as resistances.