Bitcoin extended its losses and even rose below $30,000 against the US Dollar. Bitcoin is now consolidating and may correct higher towards the $32,000 resistance.
- Bitcoin started a strong decline below the $33,500 and $32,000 levels.
- The price is now trading below $32,000 and the 100 hourly simple moving average.
- There are two important bearish trend lines forming with resistance near $32,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair may correct higher, but the bears may remain active near $32,000.
Bitcoin price drop 10%
Bitcoin price has been in a major downtrend and Extended Cons Less than $35,000. Bitcoin traded below the key support levels of $33,500 and $32,000 to move into a bearish zone.
There was a closing of less than $32,000 and 100-hour simple moving average. The price even traded below the $30,800 level and rose to below $30,000. A new multi-week low is forming near $29,755 and the price is now consolidating its losses.
On the upside, bitcoin price is facing resistance near the $31,250 level. It is near the 23.6% Fib retracement level of the recent decline from the $36,060 high to $29,755.
The next major resistance might be near the $32,000 level. There are two important downtrend lines forming with resistance near $32,000 on the hourly chart of the BTC/USD pair. The main breakout area could be near the $33,000 area.
Source: BTCUSD on TradingView.com
The 50% Fib retracement level of the recent decline from $36,060 to the low of $29,755 is also near the $33,000 region. To start a good recovery wave, the price must settle above the $33,000 level. In the mentioned case, the price may rise towards the $35,000 level.
More losses in bitcoin?
If Bitcoin fails to clear the $32,000 resistance area, it may continue to move lower. There is immediate support on the downside near the $30,200 level.
The next major support appears near the $30,000 level. A bearish breakout and a close below the $30,000 support could lead to more downside. The next major support could be $29,500. Any further losses could send the price towards the $28,800 support area.
Hourly MACD – The MACD is now gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 40 level.
Key support levels – $30,200, followed by $30,000.
The main resistance levels are $31,200, $32,000 and $33,000.