Bitcoin has begun a fresh decline from the $23,000 mark, which has now taken us below the $22,000 mark. With that drop, bitcoin is now trading below $22,500 and the 100-hour moving average. For now, it seems important for bitcoin to at least manage to hold the $21,450 level.
What happened?
Not long ago, bitcoin broke above $24,000 convincingly, and optimism was back. Now we are a few days further on, and we are “just trading again” at $21,800. Around the current price level, however, the bulls seem to be more active and are making things relatively difficult for the bears.
⚡️#Bitcoin surpassed $23,000 mark for the first time in two months 🔥#btc 🚀🚀 pic.twitter.com/9D8lCEOY1E
— SwapSpace (@SwapSpaceCo) July 19, 2022
After losing the important blue bullish trend line, the bulls have to look for a while. It is hoped that we will be able to maintain support around $21,800 and at least the green line around $21,400.
If not, it will be downward looking, and we may be heading for a new local low for bitcoin during this bear market. A scenario that most bitcoiners are not looking forward to after months of misery.
The road up
The next resistance on the way up for bitcoin lies at $22,500. A close above that level could set bitcoin up for further gains. In that case, the price could even rise to the $23,000 mark.
If successful, the next major resistance lies at $24,000, the level where we ran aground during the last run-up on fierce bear resistance. Unfortunately for this scenario, the MACD on the hourly chart is currently creating more momentum in the bearish zone.
So on the hourly chart, things are not looking great for bitcoin at the moment, but at the end of the day, it is still just technical analysis and not an exact science — anything can happen. And therefore, it is best to consider this type of analysis as a small tool or entertainment, but certainly not to base your strategy on it.
