Bitcoin made a bearish correction and tested the $29,000 support against the US Dollar. Bitcoin must settle above the $30,500 resistance to start a proper rally.
- Bitcoin failed to get a pace above $31,000 and corrected back below $30,000.
- The price is now trading above the $30,000 level and the 100 hourly simple moving average.
- There was a break above the descending trend line connected with resistance near $29,600 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could gain bullish momentum if there is a close above the $30,500 resistance.
Bitcoin price faces hurdles
Bitcoin price started a Correction of the negative side From the region of $31,500. Bitcoin traded below the $30,000 support area and the 100 hourly simple moving average.
There was a move below the $29,500 level, but the bulls were active near the $29,000 region. A bottom was formed near $29,060 and the price is now regaining its losses. There was a clear move above the $29,500 level. The price cleared the 23.6% Fib retracement level of the recent decline from the swing high $31,390 to $29,060.
Bitcoin is now trading above $30,000 and 100-hour simple moving average. There was a break above the connecting descending trend line with resistance near $29,600 on the hourly chart of the BTC/USD pair.
There is an immediate resistance near the $30,300 level. It is close to the 50% Fib retracement level of the recent decline from the $31,390 high to $29,060. A successful close above the $30,300 level may open the door to a decent increase.
Source: BTCUSD on TradingView.com
The next major resistance is near the $31,400 level. A clear move above the $30,300 and $31,400 resistance levels may start a new increase in the upcoming sessions. The next major resistance might be near the $32,500 level, above which the price could rise towards $34,000.
A new drop in bitcoin?
If Bitcoin fails to rise above the $31,400 resistance area, it may start a new decline. There is immediate support on the downside near the $29,600 level.
The first major support is near the $29,000 level. A break-down and a close below the $29,000 support level could start a significant decline. In the mentioned case, the price may drop towards the $89,000 level.
Hourly MACD The MACD is now slowly gaining pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Key support levels – $29,600, followed by $29,000.
The main resistance levels are $30,500, $31,400 and $32,500.