Bitcoin price plunges 5% after rejection and is now at risk of moving to $21,000

Bitcoin price fell sharply after another decline near $23,650. BTC is now consolidating above $22,000 and remains at risk of more downside.

• Bitcoin is down over 5% and there was a sharp reaction from the $23,650 resistance zone.
• The price is trading below $23,020 and the 100 hourly simple moving average.
• An important bearish trend line is forming with resistance near $23,220 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair may correct higher, but the upside may be limited above the $22,800 level.

Bitcoin price is dropping sharply

Bitcoin price struggled to clear the $23,650 and $23,950 resistance levels. BTC fell sharply from the $23,977 swing high. It is down over 5% and there was a clear move below the $23,200 support.

The bears pushed the price below the $22,500 support zone and the 100 hourly simple moving average. It even tested the $22,000 support zone. A low is forming near $22,000 and the price is now consolidating losses. It is trading well below $23,020 and the 100 hourly simple moving average.

An immediate resistance is near the $22,450 zone. It is near the 23.6% Fib retracement level for the downward move from the $23,977 swing high to the $22,000 low.

The first major resistance is near the $22,800 zone. The main resistance is now near the $23,000 zone. It is near the 50% Fib retracement level for the downward move from the $23,977 swing high to the $22,000 low. There is also an important bearish trend line forming with resistance near $23,220 on the hourly chart of the BTC/USD pair.

Source: BTCUSD on TradingView.com

A clear move above the $23,220 resistance could start a steady rise towards the $24,650 resistance zone. The next key resistance is near the $24,000 zone, above which the price could move into a bullish zone.

More losses in BTC?

If the bitcoin price fails to clear the $22,800 resistance, it could start another decline. An immediate support on the downside is near the $22,200 zone.

The next major support is near the $22,000 zone, below which the bears could gain strength and push the price to $21,200. The next major support is near the $21,000 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 30 level.

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

Major resistance levels – $22,450, $22,800 and $23,220.