Bitcoin Forms Bullish Pattern, Why BTC Could Accelerate Higher


Bitcoin has kept offering well above the $29,350 support area against the US Dollar. BTC started a new increase and created the $30,000 resistance area.

  • Bitcoin has started its recovery wave from the $29,350 support area.
  • The price is now trading above the $30,000 level and the 100 hourly simple moving average.
  • There was a break above the major downtrend line with resistance near $29,700 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could accelerate higher if the $31,180 resistance area is cleared.

Bitcoin price aims higher

Bitcoin price kept bidding well near the key $29,350 support area. A base was formed near $29,350 and the price started a new increase. There was a clear move above the $29,800 and $30K resistance levels.

Besides, there was a break above the major downtrend line with resistance near $29,700 on the hourly chart of the BTC/USD pair. The pair rose above the $30,000 level and 100-hour simple moving average. There was a rally above the 50% Fib retracement level of the major decline from $32,400 to the low of $29,255.

Bitcoin price is now consolidating near the $30,800 level. There is an immediate resistance on the upside near the $31,180 level. It is close to the 61.8% Fib retracement level of the major decline from $32,400 to the $29,255 low.

Bitcoin price

Source: BTCUSD on TradingView.com

The next major resistance is near the $31,650 level. A clear move above the $31,650 resistance could trigger another rally. In the mentioned case, the price could rise towards the $32,400 resistance. The next major resistance is near the $33,000 level.

Dips Limited in BTC?

If Bitcoin fails to clear the $31,180 resistance area, it could be a downside correction. There is immediate support on the downside near the $30,400 level.

The next major support is near the $29,950 level and the 100 hourly simple moving average. A break-down below the support level at $29,950 may trigger another decline. In the mentioned case, the price could revisit the $29,350 support area in the near term.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in bullish territory.

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

The main support levels – $30,400, followed by $29,950.

Key resistance levels – $31.180, $31.650, and $32,400.



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