Bitcoin price is facing rejection and it is vulnerable to a drop below $22K

Bitcoin price is moving lower below the $22,200 level. BTC could take a hit if there is a close below the $22,000 support zone in the short term.

• Bitcoin is showing bearish signs below the $22,500 resistance zone.
• The price is trading below $22,250 and the 100 hourly simple moving average.
• An important bearish trend line is forming with resistance near $22,250 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair still has a risk of a bigger decline if there is a close below $22,000.

Bitcoin price in danger

Bitcoin price attempted an upside correction from the $22,000 support zone. BTC climbed above the $22,250 and $22,400 levels. However, the bears were active near the $22,600 level.

The price faced a rejection near the $22,600 level and recently fell sharply. There was a strong move below the $22,200 and $22,000 levels. A low is forming near $21,904 and the price is now consolidating losses. There was a minor increase above the $22,000 level.

Bitcoin price is now trading below $22,250 and the 100 hourly simple moving average. It is testing the 50% Fib retracement level of the recent decline from the $22,600 swing high to the $21,904 low.

An immediate resistance is near the $22,250 level. There is also an important bearish trend line forming with resistance near $22,250 on the hourly chart of the BTC/USD pair. The next major resistance is near the $22,420 zone. It is near the 76.4% Fib retracement level of the recent decline from the $22,600 swing high to the $21,904 low.

Source: BTCUSD on TradingView.com

The main barrier is now near the $22,750 zone. A close above the $22,750 resistance could initiate a decent rally towards the $23,200 resistance zone. The next key resistance is near the $23,850 zone, above which the price could rise.

More losses in BTC?

If the bitcoin price fails to clear the resistance at $22,250 and $22,420, it could start another decline. An immediate support on the downside is near the $22,000 zone.

The next major support is near the $21,800 zone, below which the price could fall to $21,200. The next major support is near the $20,500 level. Any further losses could send the price towards the $20,000 level.

Technical indicators:

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

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

Major support levels – $22,000, followed by $21,200.

Major resistance levels – $22,250, $22,420 and $23,000.