Bitcoin fund supported near $29,350 and recovered against the US dollar. BTC must clear the $31,000 resistance and the 100-hour SMA to continue higher.
- Bitcoin started a recovery wave from the $29,350 area.
- The price is now trading below the $31,000 level and the 100 hourly simple moving average.
- There is a major bearish trend line forming with resistance near $31,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could resume its decline if there is no clear movement above the $31,000 resistance.
Bitcoin price regains $30,000
Bitcoin price decline extends below $30,000 support area. However, the downsides were limited below the $29,500 level. The price formed a base near $29,350 and a recovery wave started.
There was a move above the $30,000 resistance area. The price rose above the 23.6% Fib retracement level of the recent decline from $32,400 to the low of $29328. It even rose above the $30,500 resistance area, but the bears were active near the $31,000 level.
Bitcoin price is now trading below $31,000 and 100-hour simple moving average. There is also a major bearish trend line forming with resistance near $31,000 on the hourly chart of the BTC/USD pair.
The trend line is approaching the 50% Fib retracement level of the recent decline from $32,400 to the $29328 low. There is an immediate resistance on the upside near the $30,800 level. The next major resistance is near $31,000 and the 100 hourly simple moving average.
Source: BTCUSD on TradingView.com
A clear move above the $31,000 resistance level could start another increase. In the mentioned case, the price may rise towards the $32,000 resistance. The next major resistance is near the $32,400 level.
A new drop in bitcoin?
If Bitcoin fails to clear the $31,000 resistance area, it may start dropping again. There is immediate support on the downside near the $30,000 level.
The next major support is near the $29,350 level. A break-down below the support level at $29,350 could trigger a sharp decline. In the mentioned case, the price could revisit the $28,250 support area.
Hourly MACD The MACD is now losing momentum in bullish territory.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well above the 50 level.
Key support levels – $30,000, followed by $29,350.
The main resistance levels are $30,800, $31,000 and $32,000.