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.
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.
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.