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Bitcoin price is recovering gains from the $31,400 area. BTC could retest the $29,200 or $28,500 support before starting a fresh increase.
- Bitcoin is currently correcting gains from the $31,400 area.
- The price is trading below $30,500 and the 100 hourly simple moving average.
- There is a connecting bearish trend line forming with resistance near $30,550 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could continue to decline towards the $29,200 support or $28,500.
Bitcoin Price Begins Downtrend Correction
Bitcoin price remained well bid above the $29,500 resistance area. BTC surpassed the $30,000 resistance to move further in a positive zone. Eventually, there was a push above the $31,000 area.
The price tested the $31,500 area. There formed a high near $31,435 and the price is now correcting lower. There was a move below the $30,500 level. The price is trading below the 50% Fib retracement level of the upward move from the $29,550 low to $31,435 high.
Bitcoin price is now trading below $30,500 and the 100-hour simple moving average. There is also a connecting bearish trend line forming with resistance near $30,550 on the hourly chart of the BTC/USD pair.
The pair is trading near the 76.4% Fib retracement level of the upward move from the $29,550 low to $31,435 high. If the price sustains above the $30,000 level, it could soon start a fresh increase. On the upside, the price is facing resistance near the $30,400 level and the 100 hourly simple moving average.
Source: BTCUSD on Tradingview.com
The first major resistance is near the $30,550 level and the trend line, above which the price is likely to correct itself towards the $31,400 resistance area. The next major resistance is near the $32,000 level. Any more gains could send the price towards the $32,500 resistance area.
More Downside in BTC?
If bitcoin price fails to overcome the $30,550 resistance, it could continue to decline. On the downside, an immediate support is near the $30,000 level.
The next major support is near the $29,550 level, below which there is a risk of a move towards the $29,200 support. Any more losses could take the price towards $28,500 in the near term.
Technical Indicators:
Hourly MACD – The MACD is now gaining momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is well below the 50 level.
Key Support Levels – $30,000, followed by $29,550.
Key resistance levels are $30,400, $30,550, and $31,400.
