Bitcoin price at risk of downward force before another increase

Bitcoin price is correcting lower below the $24,500 level. BTC may decline towards the $23,500 support before starting another near-term rally.

• Bitcoin is slowly moving down below $24,500 and $24,000.
• The price is trading below $24,500 and the 100 hourly simple moving average.
• There was a break below a strong bullish trend line with support near $24,550 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could extend its decline towards the $23,500 and $23,000 support levels.

Bitcoin price corrects lower

Bitcoin price made another attempt to gain momentum above the $25,000 resistance zone. However, BTC failed to continue higher above the $25,200 level and started another decline.

There was a clear move below the $24,500 support zone. Also, there was a break below a major bullish trendline with support near $24,550 on the hourly chart of the BTC/USD pair. The pair even breached the $24,000 support zone and traded as low as $23,867.

Bitcoin price is now trading below $24,500 and the 100 hourly simple moving average. It is slowly correcting higher and trading above the 23.6% Fib retracement level of the recent decline from the $25,190 swing high to the $23,867 low.

On the upside, immediate resistance is near the $24,550 level and the 100 hourly simple moving average. It is near the 50% Fib retracement level of the recent decline from the $25,190 swing high to the $23,867 low.

Source: BTCUSD on TradingView.com

The next major resistance is near the $25,000 zone. A clear move above the $25,000 resistance could send the price back towards the $25,200 resistance zone. A close above the $25,200 resistance could start another decent rally. In the aforementioned case, the price may perhaps rise towards the $25,800 level. The next resistance could be near the $26,200 level.

More losses in BTC?

If the bitcoin price fails to clear the $24,550 resistance, it may continue to move lower. An immediate support on the downside is near the $24,000 zone.

The next major support is near the $23,850 zone. If there is a downside break, the price could decline towards $23,500. The next major support is near the $23,380 level, below which the price could decline towards the $22,900 support.

Technical indicators:

Hourly MACD – MACD is now losing momentum in the bearish zone.

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

Major support levels – $23,850, followed by $23,500.

Major resistance levels – $24,550, $25,000 and $25,200.