Bitcoin formed a base against the US Dollar near $21,000, attempting a recovery wave, but bears may defend gains above $23,000. Before the bulls took control, BITCOIN traded as low as $20,824.

The price currently trades below $24,000 and the 100 hourly simple moving average. On the hourly chart of the BTC/USD pair, a key bearish trend line is forming with resistance near $22,050.

The pair must break through the $23,000 resistance zone to begin a decent recovery wave.

Bitcoin Price is Still Declining

Bitcoin’s price remained bearish, trading below the $25,000 support level. The price dropped below $21,000 and settled well below the $23,000 mark. A low was formed near $20,824, and the price is now attempting to correct to the upside. The price broke through the $22,000 resistance level, but the price is still significantly lower than the $24,000 mark and the 100 hourly simple moving average.

On the upside, immediate resistance is near the $21,100 level. On the hourly chart of the BTC/USD pair, a key bearish trend line is forming with resistance near $22,050.The first significant resistance is located near the $22,600 level. It is close to the 23.6 percent Fib retracement level of the downward move from the swing high of $28,300 to the low of $20,825. If the pair breaks through the trend line, it could move towards the $23,000 resistance.

The primary resistance is around $24,600. It is close to the 50% Fib retracement level of the decline from the $28,300 swing high to the $20,825 low. A clear break above the $24,500 and $25,000 levels could set the stage for a strong uptrend.

Bitcoin Price Drop?

If Bitcoin fails to break through the $22,600 resistance zone and the trend line, it may begin a new decline. On the downside, there is immediate support near the $21,250 level.

The next significant support is around $21,000. A break below the $21,000 support level could send the price down to the swing low of $20,825. Any further losses may necessitate a $20,000 test. Good luck!