Bitcoin gained pace and even spiked above the $22,000 resistance against the US Dollar. BTC is correcting gains, but dips might be limited below $21,500.

• Bitcoin was able to clear the $21,200 and $21,500 resistance levels.
• The price is now trading above $21,500 and the 100 hourly simple moving average.
• There is a key bullish trend lien forming with support near $21,600 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair is correcting gains, but dips might be limited below the $21,500 level.

Bitcoin Price Starts Fresh Rally

Bitcoin price remained well bid above the $20,000 level and started a fresh increase. There was a clear move above the $21,000 and $21,200 resistance levels.

The price even surpassed the $21,500 resistance and spiked above the $22,000 resistance. A high was formed near $22,347 and the price recently started a downside correction. There was a move below the $22,000 and $21,850 levels.

Bitcoin price traded below the 23.6% Fib retracement level of the recent increase from the $21,180 swing low to $22,347 high. It is now trading above $21,500 and the 100 hourly simple moving average. Besides, there is a key bullish trend lien forming with support near $21,600 on the hourly chart of the BTC/USD pair.

Source: BTCUSD on TradingView.com

On the upside, an immediate resistance is near the $22,000 level. The next major resistance sits near the $22,350 level. A clear move above the $22,350 resistance might start another steady increase. In the stated case, the price may perhaps rise towards $22,800. Any more gains might send the price towards the $23,200 resistance zone.

Dips Limited in BTC?

If bitcoin fails to gain pace above the $22,000 zone, it could start a downside correction. An immediate support on the downside is near the $21,700 zone.

The 50% Fib retracement level of the recent increase from the $21,180 swing low to $22,347 high is also near $21,700. The first major support is now forming near the $21,600 level. A downside break below the $21,600 level might send the price towards the $21,200 support.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bearish zone.

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

Major Support Levels – $21,700, followed by $21,600.

Major Resistance Levels – $22,000, $22,350 and $23,200.