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    Bitcoin Price Below 100 SMA Could Spark Bearish Reaction


    Bitcoin is slowly moving lower below $24,500 against the US Dollar. BTC could drop in the short-term if it stays below the 100 hourly SMA.

    • Bitcoin started a downside correction after it failed to settle above $25,000.
    • The price is now trading below the $24,500 level and the 100 hourly simple moving average.
    • There was a break below a key bullish trend line with support near $24,300 on the hourly chart of the BTC/USD pair (data feed from Kraken).
    • The pair could extend losses below the $23,780 and $23,500 support levels in the short-term.

    Bitcoin Price Breaks Support

    Bitcoin price attempted another increase above the $24,500 resistance zone. BTC was able to jump above the $25,000 resistance level and traded to a new monthly high.

    However, the price failed to stay above the $25,000 level. A high was formed near $25,200 and the price started a downside correction. There was a move below the $24,800 and $24,500 levels. Besides, there was a break below a key bullish trend line with support near $24,300 on the hourly chart of the BTC/USD pair.

    Bitcoin price is now trading below the $24,500 level and the 100 hourly simple moving average. A low is formed near $23,789 and the price is now consolidating losses.

    There was a minor move above the 23.6% Fib retracement level of the recent decline from the $25,200 swing high to $24,789 low. On the upside, an immediate resistance is near the $24,300 level and the 100 hourly simple moving average.

    Bitcoin Price

    Source: BTCUSD on TradingView.com

    The next key resistance is near the $24,500 zone. It is near the 50% Fib retracement level of the recent decline from the $25,200 swing high to $24,789 low. A close above the $24,500 resistance zone could start another increase. In the stated case, the price may perhaps climb above the $25,000 resistance. Any more gains might send the price towards the $25,800 level.

    Dips Limited in BTC?

    If bitcoin fails to clear the $24,500 resistance zone, it could continue to move down. An immediate support on the downside is near the $23,780 level.

    The next major support now sits near the $23,500 level. A downside break and close below the $23,500 level might spark a sharp decline. In the stated case, the price might drop towards the $22,750 level.

    Technical indicators:

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

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

    Major Support Levels – $23,780, followed by $23,500.

    Major Resistance Levels – $24,300, $24,500 and $25,000.



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