Bitcoin remained in positive territory above $31,200 against the US Dollar. BTC could correct lower, but the bulls may remain active near $30,800.
- Bitcoin is showing positive signs above the $30,500 and $31,000 resistance levels.
- The price is now trading above the $31,200 level and the 100 hourly simple moving average.
- There is a major bullish trend line forming with support near $31,800 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could correct the decline and test the $31,000 and $30,800 support levels.
Bitcoin price faces major resistance
Bitcoin price Extended increase Above the $31,000 area. It even broke the $32,000 resistance on several occasions, but the bears protected further gains above $32,200.
The recent swing high formed near $32,400 before the price started correcting to the downside. There was a move below the $32,000 level. The price corrected and tested the 23.6% Fib retracement level of the upward move from the $29,085 swing low to $32,400.
It is now testing the $31,800 area. There is also a major bullish trend line forming with support near $31,800 on the hourly chart of the BTC/USD pair. Bitcoin is also well above $31,200 and 100-hour simple moving average.
Source: BTCUSD on TradingView.com
There is an immediate resistance on the upside near the $32,000 level. The next major resistance is near $32,200 and $32,400. A clear move above the $32,400 resistance could start another increase. In the mentioned case, the price could rise towards the $32,500 resistance. The next major resistance is near the $33,400 level.
Supporting Bitcoin dips?
If Bitcoin fails to clear the $32,400 resistance area, it may start a downside correction. There is immediate support on the downside near the $31,800 level and the trendline. A bearish breakout below the trend line could lead the price towards the $30,800 support.
The 50% Fib retracement level of the upward move from the $29,085 swing low to $32,400 is also near the $30,800 level. Any further gains could open the door to a move towards the $30K support.
Hourly MACD The MACD is now losing momentum in bullish territory.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is moving lower towards the 50 level.
Key support levels – $31,800, followed by $30,800.
The main resistance levels are $32,000, $32,200 and $32,400.