Bitcoin Reclaims $30K, Why Bulls Face Uphill Task


Bitcoin started a fresh increase from the $28,500 support area against the US Dollar. BTC must clear $30,600 to move forward into positive territory.

  • Bitcoin formed a base above $28,500 and started a new increase.
  • The price is now trading above the $30,000 level and the 100 hourly simple moving average.
  • There is a major bearish trend line forming with resistance near $30,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could gain bullish momentum if there is a clear move above $30,600.

Bitcoin price faces resistance

Bitcoin price finds support near the $28,500 region after steady decline. A base was formed near $28,600 and a new increase started.

There was a clear move above the $29,500 resistance area and 100-hour simple moving average. The bulls pushed the price above the $30,000 resistance area. However, they now face an uphill task near the $30,600 region.

There is also a major bearish trend line forming with resistance near $30,400 on the hourly chart of the BTC/USD pair. A top formed near $30.721 and the price is now consolidating the gains.

The price is trading above the 23.6% Fib retracement level of the upward move from the low-swinging $28,590 to the $30.721 high. There is an immediate resistance near the $30,400 level. The next major resistance is near the $30,600 level.

Bitcoin price

Source: BTCUSD on TradingView.com

A clear move above the $30,400 and $30,600 resistance levels may start a new increase in the near term. The next major resistance might be near the $31,500 level, and above it the price may gain upward momentum.

A new drop in bitcoin?

If Bitcoin fails to rise above the $30,600 resistance area, it may start a new decline. There is immediate support on the downside near the $30,000 level. The first major support is near the $29,800 level and the hourly 100 SMA.

The next major support is near the $29655 level. It is close to the 50% Fib retracement level of the upward move from the $28,590 swing low to $30,721. A break-down and a close below the $29,650 support could start another decline. In the mentioned case, the price could drop towards the $28,500 level.

Technical indicators:

Hourly MACD The MACD is now slowly losing its momentum in the bullish zone.

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

Key support levels – $29,800, followed by $29,650.

The main resistance levels are $30,600, $31,200 and $31,500.



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