TA: Bitcoin Price Could Avoid Another Drop if it Closes Above One Key Level

• Aayush Jindal
• 26 Aug, 2022

Bitcoin is struggling to gain pace above $21,500 against the US Dollar. BTC must clear the $22,500 resistance zone to avoid a fresh decline in the near term.

Bitcoin is struggling to gain pace above the $21,500 and $21,600 levels. The price now trades above the $21,500 level and the 100 hourly simple moving average.

There is a key bearish trend line forming with resistance near $22,000 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair could start a decent increase if there is a close above the $22,000 resistance zone.

Bitcoin Price Faces Hurdles

Bitcoin price started a minor upside correction from the $21,000 support zone. BTC was able to slowly move higher above the $21,250 and $21,500 levels.

The price broke the $21,650 level and the 100 hourly simple moving average. There was a clear move above the 23.6% Fib retracement level of the downward move from the $24,416 swing high to $20,797 low.

However, the bulls struggled to gain strength for a push towards the $22,000 resistance. Bitcoin is trading above the $21,500 level and the 100 hourly simple moving average. On the upside, immediate resistance is near the $21,750 and $21,800 levels.

The first significant resistance on the upside sits near the $22,000 level. There is also a key bearish trend line forming with resistance near $22,000 on the hourly chart of the BTC/USD pair.
 

A clear move above the trend line resistance might send the price towards the $22,500 zone. The next major resistance could be near the $22,650 zone.

It is close to the 50% Fib retracement level of the downward move from the $24,416 swing high to the $20,797 low. Any more gains might send the price towards the $24,000 resistance zone.

Fresh Decline in BTC?

If bitcoin fails to clear the $22,000 resistance zone, it could start another decline. Immediate support on the downside is near the $21,500 level and the 100 hourly simple moving average.

The next significant support now sits near the $21,000 level. A close below the $21,000 support might start another decline in the near term. The price might decline towards the $20,000 level in the stated case. - newsbtc

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