Bitcoin Gains Momentum, Why Break Above $30K Is Crucial


Bitcoin retreated towards the $25,000 support area against the US Dollar. Bitcoin is now recovering and may look for a bullish breakout above the key $30K resistance area.

  • Bitcoin found support above $25,000 and started an upward correction.
  • The price is still trading below $30,000 and the 100 hourly simple moving average.
  • There is a major bearish trend line forming with resistance near $30,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair must cross the $30K barrier to move into positive territory and start a real recovery.

Bitcoin price starts to recover

Bitcoin price remained at Bearish zone below the $30,000 support area. BTC extended its decline and traded below $28,000.

There was a rally below $26,000 and the price traded to a new multi-month low at $25332. The base formed above $25,000 and the price started a new upward move. There was a clear move above the $26,500 and $27,500 resistance levels.

The price rose above the 50% Fib retracement level of the recent decline from the swing high $32,130 to $25332. However, it still trades for less than $30,000 and 100-hour simple moving average.

There is also a major bearish trend line forming with resistance near $30K on the hourly chart of the BTC/USD pair. The next major resistance is near the $30,500 area and the 100 hourly simple moving average. It is close to the 76.4% Fib retracement level of the recent decline from the swing high $32,130 to $25,332.

Bitcoin price

Source: BTCUSD on TradingView.com

The obvious move above the $30,000 and $30,500 resistance levels may start a new increase in the upcoming sessions. The next major resistance could be near the $31,500 level, above which the price could rise above $32,000.

A new drop in bitcoin?

If Bitcoin fails to clear the $30K resistance area, it may start a new low. There is immediate support on the downside near the $28,800 level.

The next major support is seen near the $27,650 level. A bearish breakout and a close below the $27,650 support could accelerate losses. The next major support could be $26,200, below which the bears might aim to move towards the $25,500 support area.

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 above the 50 level.

Key support levels – $28,200, followed by $27,650.

The main resistance levels are $30,000, $30,500 and $31,500.



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