TA: Why Bitcoin Rally Could Soon Fade If BTC Fails To Surpass $24K

Bitcoin price started a fresh upward move from the $22,000 support zone against the US Dollar. BTC is now trading nicely above the 100 hourly SMA, but it is facing hurdles near $24,000.

• Bitcoin started a fresh increase above the $23,000 and $23,500 resistance levels.
• The price is currently trading well above $23,200 and the 100 hourly simple moving average.
• There was a break above a key bearish trend line with resistance near $23,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could dip again unless it clears the $24,000 and $24,200 resistance levels.

Bitcoin Price is Showing Bullish Signs

After a sharp decline, bitcoin price found support near the $22,350 level. A support base was formed before BTC started a fresh increase above the $22,800 and $23,000 levels.

The price gained bullish momentum above the $23,200 resistance level and settled above the 100 hourly simple moving average. There was also a break above a key bearish trend line with resistance near $23,200 on the hourly chart of the BTC/USD pair.

Bitcoin even climbed above the $23,500 resistance level and traded close to the $24,000 resistance. A high is formed near $24,044 and the price is clearly facing hurdles near $24,000.

Source: BTCUSD on TradingView.com

It is now trading near the 23.6% Fib retracement level of the recent wave from the $22,359 swing low to $24,044 high. The next major support on the downside is near the $23,500 level or the 100 hourly simple moving average.

There is also a connecting bullish trend line forming with support near $23,200 level. It coincides with the 50% Fib retracement level of the recent wave from the $22,359 swing low to $24,044 high. Any more downsides below the trend line support could lead the price towards the $22,350 support zone in the coming sessions.

Upsides Break in BTC?

If bitcoin remains stable above the $23,500 and $23,320 levels, there are high chances of an upside break. An initial resistance on the upside is near the $24,000 level.

The next major resistance is near the $24,250 level. A close above the $24,250 level could start another pump and the price could easily rise towards the $25k in the near term.

Technical indicators:

Hourly MACD – The MACD is slowly losing momentum in the bullish zone.

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

Major Support Levels – $23,500, followed by $23,200.

Major Resistance Levels – $24,000, $24,100 and $24,250.

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