Bitcoin Forms Bullish Pattern, Why Break Above $31.5K Is The Key


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.

Bitcoin price

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.

Technical indicators:

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.



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