Bitcoin remained strong above the $29,500 support level against the US Dollar. BTC could start a significant increase if there is a clear move above the $31,500 resistance.
- Bitcoin started a fresh increase from the $29,500 support area.
- The price is now trading above the $30,000 level and the 100 hourly simple moving average.
- There is a major bearish trend line forming with resistance near $31,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could start a significant upward movement if there is a clear move above the $31,500 resistance.
Bitcoin price reverses losses
Bitcoin price kept bidding well above $29,200 and $29,500. A bottom was formed near $29,200 and the price started a new increase. There was a clear move above the $30,000 resistance area.
The bulls were able to pump the price above the $30,500 level and 100-hour simple moving average. It even rose above the $31,000 level and even tested the $31,500 resistance area. A top formed near $31,550 and the price is now consolidating the gains.
It has already tested the 23.6% Fib retracement level of the recent increase from $29,200 to $31,550. There is an immediate resistance on the upside near the $31,400 level.
There is also a major bearish trend line forming with resistance near $31,400 on the hourly chart of the BTC/USD pair. The first major resistance is near the $31,500 level. A clear move above the $31,500 resistance could lead the price to move higher.
Source: BTCUSD on TradingView.com
The next major resistance might be $32,200. Any further gains could change the bias and bitcoin price could move towards the $33,200 level.
A new drop in bitcoin?
If Bitcoin fails to clear the $31,500 resistance area, it may start dropping again. There is immediate support on the downside near the $30,850 level.
The next major support is near the $30,175 level. It is close to the 50% Fib retracement level of the recent increase from $29,200 to $31,550. A break-down below the $30,175 support level could trigger another decline. In the mentioned case, the price could move towards the $29,500 support area in the near term.
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 – $30,850, followed by $30,175.
The main resistance levels are $31,400, $31,500 and $32,200.