Bitcoin Price At Risk of Short-term Bearish Breakdown, Dollar Rallies

New Delhi(CoinChapter.com): Bitcoin price is correcting gains below $23,500. BTC/USD must clear the $23,350 resistance to start a fresh increase in the near term.

Bitcoin Price Corrects Gains

After climbing above the $23,500 level, bitcoin price extended its increase. The BTC/USD pair even spiked above the $24,000 resistance zone before the bears appeared.

The price traded as high as $24,240 and recently started a downside correction, similar to ethereum, ripple, cardano and BNB. There was a downside correction below the $23,500 support zone and the 50 simple moving average (4-hours, blue).

The price gained pace when it broke the $23,200 support. It even spiked below the $22,800 level. A low is formed near $22,666 and the price is now consolidating losses.

On the upside, an immediate resistance is near the $23,040 level. It is close to the 23.6% Fib retracement of the recent drop from the $24,240 swing high to $22,666 low. Bitcoin price is also facing a major bearish trend line with resistance near $23,000 on the 4-hours chart.

The first major resistance is near the $23,300 level or the 50 simple moving average (4-hours, blue). It coincides with the 50% Fib retracement of the recent drop from the $24,240 swing high to $22,666 low.

A close above the $23,300 level might start a strong increase towards the $24,000 level. The next major resistance is near the $24,250 zone. Any more gains might send the price towards the $25,200 resistance zone in the coming days.

Further Correction in BTC?

On the downside, the first major support is near the $22,650 level. The next key support sits near the $22,350 level. A clear move below the $22,350 support could spark a bearish move.

The next major support is near the $21,420 zone, where the bulls could take a strong stand. If they fail, there is a risk of a move towards the $20,000 support zone. 

Overall, bitcoin price is slowly moving lower and trading below $23,000. If BTC fails to stay above the $22,350 support zone, there is a risk of a downside extension towards $21,400 or even $20,000. Conversely, the price might remain well bid and start a fresh increase towards $24,250.

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