TA: Bitcoin Price Bearish Weekly Close Suggests it’s Vulnerable For Bigger Decline

• Aayush Jindal
• 22 Aug, 2022

Bitcoin declined heavily below the $22,000 support zone against the US Dollar. BTC is correcting gains, but upsides might be limited above the $22,500 resistance.

Bitcoin extended losses and declined below the $22,000 support. The price now trades below the $22,000 level and the 100 hourly simple moving average.

There is a major bearish trend line forming with resistance near $21,550 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair could extend losses if it stays below the $21,500 and $22,000 levels.

Bitcoin Price Dives over 8%

Bitcoin price started a major decline below the $23,000 support zone. BTC gained bearish momentum below the $22,500 and $22,200 support levels.

The decline was such that the price settled below the $22,000 support zone. It even spiked below the $21,000 level and traded as low as $20,797.
 

The price is now correcting losses above the $21,000 level. It trades below the $22,000 and 100 hourly simple moving average.

Recently, there was a push above the $21,250 level. However, the bitcoin price struggled near the 23.6% Fib retracement level of the recent decline from the $24,414 swing high to $20,797 low.
 

On the upside, immediate resistance is near the $21,500 level. There is also a central bearish trend line forming with resistance near $21,550 on the hourly chart of the BTC/USD pair.

The first significant resistance on the upside sits near the $22,000 level and the 100 hourly simple moving average. The primary resistance is forming near the $22,650 zone.
 

It is near the 50% Fib retracement level of the recent decline from the $24,414 swing high to the $20,797 low. A close above the $22,500 and $22,650 resistance levels might start another increase.

More Losses in BTC?

If bitcoin fails to clear the $22,000 resistance zone, it could continue to move down. Immediate support on the downside is near the $21,250 level. The next significant support now sits near the $20,800 level.

A downside break and a close below the $20,800 level might spark another sharp decline. The price might decline towards the $20,000 level in the stated case.- newsbtc

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