Bitcoin Slips Under $22K Amid Bearish Correction

Bitcoin began a new downturn from the $23,000 resistance level against the US dollar. BTC is falling and remains vulnerable to a sharp drop

Skerdian Meta•Monday, July 25, 2022•2 min read

Bitcoin Slips Under $22K Amid Bearish Correction

Bitcoin began a new downturn from the $23,000 resistance level against the US dollar. BTC is falling and remains vulnerable to a sharp drop below $21,800. BITCOIN began a downward correction and traded underneath the $22,200 mark. The price currently trades below $22,500 and the 100 hourly SMA (simple moving average).

On the hourly chart of the BTC/USD pair, there was a break under a key bullish trend line with support near $22,700. If there is a clear move underneath the $21,450 level, the pair could fall significantly.

Bitcoin Price Begins New Decline

Bitcoin price attempted to break through the $24,000 resistance level. On the other hand, the bears appeared near the $23,800 zone. Before the recent decline, the last swing-high was around $23,744.

BTC/USD

The BTC price fell below the $22,500 support level and the 100 hourly SMA (simple moving average). On the other hand, the bulls were active near the $21,950 level. There has recently been an upward correction just above the $22,200 resistance zone. The price rose above the 23.6 percent Fib retracement level of the descending move from the swing high of $22,744 to the low of $21,950.

However, the price was being challenged by sellers near the $23,000 mark and the 100 hourly SMA (simple moving average). The price failed around the 50% Fib retracement level of the descending move from the swing high of $22,744 to the low of $21,950.

It is now trading below $22,000. On the hourly chart of the BTC/USD pair, there was a break under a key bullish trend line with support near $22,700. It is now nearing a critical support level of $21,800. On the plus side, the Bitcoin price may encounter resistance near the $22,200 level.

The next significant resistance level is around $22,500. A close above the $22,500 resistance level may set the tone for further gains. The price may rise to the $23,000 mark in the case above. The next significant barrier is located near $24,000.

BTC Downside Break?

If Bitcoin fails to hold above the $21,800 support level, it may continue to fall. On the downside, there is immediate support near the $21,600 level.

The next significant support is now around $21,500. A clear break and close below the $21,500 support zone could decrease the price to $20,500 or even $20,000.

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ABOUT THE AUTHOR See More

Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.