Bitcoin price holds support, why BTC may attempt new increase

Bitcoin price gained momentum above the $23,500 resistance against the US dollar. BTC could start another rally if it stays above the $23,500 pivot level.

• Bitcoin started a decent rally above the $23,500 level.
• The price is now trading above the $23,500 level and the 100 hourly simple moving average.
• An important bullish trend line is forming with support near $23,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair needs to clear the $24,000 resistance to initiate another near-term rally.

Bitcoin price remains supported

Bitcoin price was stable above the $23,000 and $23,200 levels. The price formed a base above the $23,200 level and started a new rally.

There was a clear move above the $23,500 resistance zone. The bulls were able to push the price above the $24,000 resistance zone and there was a close above the 100 hourly simple moving average. It was a top above the $24,200 level.

A high was formed near $24,285 and the price is now correcting lower. There was a break below the $24,000 level. Bitcoin price fell below the 23.6% Fib retracement level of the upward move from the $22,845 swing low to $24,285 high.

However, the price remained stable above the $23,600 level. An important bullish trend line is also forming with support near $23,500 on the hourly chart of the BTC/USD pair.

Source: BTCUSD on TradingView.com

On the upside, an immediate resistance is near the $24,000 level. The next key resistance is near the $24,200 zone. A close above the $24,200 resistance zone could start a steady rally. In the indicated case, the price might rise and clear the $25,000 resistance.

Downside breakout in BTC?

If bitcoin fails to clear the $24,000 resistance zone, it could start a downside correction. An immediate support on the downside is near the $23,600 level.

The next major support is now near the $23,500 level. It is near the 50% Fib retracement level for the upward move from the $22,845 swing low to the $24,285 high. A close below the $23,500 level could initiate a move towards $23,000. Any further losses could send the price towards the $22,500 level.

Technical indicators:

Hourly MACD – MACD is now picking up speed in the bullish zone.

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

Major support levels – $23,600, followed by $23,500.

Major resistance levels – $24,000, $24,200 and $24,500.