Bitcoin Bears Keep Pushing, Why BTC Could Still Nosedive


Bitcoin is heading lower towards the major support at $29,500 against the US Dollar. BTC must stay above $29,500 to avoid a major negative breakout.

  • Bitcoin is struggling to stay above the $29,500 support area.
  • The price is now trading below the $30,500 level and the 100 hourly simple moving average.
  • There is a major contracting triangle forming with resistance near $31,050 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could start a significant decline if there is a break below the $29,500 support.

Bitcoin Price Shows Bearish Signals

Bitcoin price fails to gain strength above The $31,200 and $31,500 resistance levels. However, there was no visible movement, and the price started a new drop below $31,000.

There was a move below the $30,850 and $30,500 support levels. The price rose to below $30 thousand and settled below 100-hour simple moving average. It traded near the $29,500 support area and formed a low of $29.561.

Bitcoin is now consolidating losses and trading above the $29,800 level. There is an immediate resistance on the upside near the $30.030 level. It is near the 23.6% Fib retracement level of the recent decline from $31,550 to the $29,561 low.

The first major resistance is near the $30,500 level and the hourly 100 SMA. It is close to the 50% Fib retracement level of the recent decline from $31,550 to the low of $29,561.

Bitcoin price

Source: BTCUSD on TradingView.com

The main resistance is near the $31,000 level. There is also a major contracting triangle forming with resistance near $31,050 on the hourly chart of the BTC/USD pair. A clear move above the $31,050 resistance could lead the price to move higher. The next major resistance might be $31,500, after which the price could start a decent increase.

Broke the downside in bitcoin?

If Bitcoin fails to clear the $31,050 resistance area, it may start dropping again. There is immediate support on the downside near the $29,650 level.

The next major support is near the $29,500 level. A break-down below the $29,500 support level could put a lot of pressure on the bulls. In the mentioned case, the price could drop towards the $28,500 support area in the near term.

Technical indicators:

Hourly MACD The MACD is now losing its momentum in the bearish zone.

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

Key support levels – $29,800, followed by $29,500.

The main resistance levels are $30,500, $31,050 and $31,500.



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