Bitcoin price reaches the inflection zone and 100 SMA is key

Bitcoin price tested the $23,600 zone and started a decent rally. BTC needs to clear the $24,500 resistance and the 100-hour SMA to move into a positive zone.

• Bitcoin is slowly moving higher above the $24,000 resistance zone.
• The price is trading below $24,500 and the 100 hourly simple moving average.
• There was a break above a key bearish trend line with resistance near $24,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could gain bullish momentum if it clears the 100 hour SMA and $24,500.

Bitcoin price holds ground

Bitcoin price started a downside correction from the $25,200 resistance zone. There was a steady decline below the $24,500 support zone and the 100-hour simple moving average.

The price even rose below the support zone of $24,000. A low was formed near $23,600 and the price recently started another rise. There was a move above the $23,800 and $24,000 levels. The price climbed above the 23.6% Fib retracement level of the downward move from the $25,250 swing high to the $23,600 low.

Also, there was a break above a key bearish trend line with resistance near $24,000 on the hourly chart of the BTC/USD pair. However, the bitcoin price is trading below $24,500 and the 100-hour simple moving average.

On the upside, an immediate resistance is near the $24,500 level. The next major resistance is near the $24,600 zone or the 61.8% Fib retracement level in the downward move from the $25,250 swing high to $23,600 low. A clear move above the $24,600 resistance could send the price towards the key $25,000 resistance.

Source: BTCUSD on TradingView.com

A close above the $25,000 resistance could set the stage for another rally. In the aforementioned case, the price might rise towards the $26,200 level.

Another decline in BTC?

If the bitcoin price fails to clear the $24,600 resistance, it could start another decline. An immediate support on the downside is near the $24,000 zone.

The next major support is near the $23,600 zone. If there is a downside break, the price could drop towards $22,200. The next major support is near the $22,000 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 – $24,000, followed by $23,600.

Major resistance levels – $24,500, $24,600 and $25,000.