Bitcoin attempted a recovery wave above $32,000 against the US Dollar. BTC is struggling and remains at risk of further losses to below $30,000.
- Bitcoin started a short term recovery wave after it tested the $30,000 area.
- The price is now trading below $31,500 and the 100 hourly simple moving average.
- There is a major bearish trend line forming with resistance near $31,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair may resume the decline if it remains below the $32,400 resistance area.
Bitcoin price faces hurdles
Bitcoin price Extended Cons Less than $32,000. BTC even tested the $30K support area and traded as low as $29,755.
Recently, there was an upward correction above the $31,000 level. The price was able to climb above the 23.6% Fib retracement level of the major decline from $36,059 to the $29,755 swing high. The bulls were able to push the price above the $32,000 resistance.
However, they encountered a strong resistance near the $32,650 region. Bitcoin remained below the 50% Fibonacci retracement level of the major decline from the high of $36,059 to $29,755.
The price is now trading under $31,500 and 100-hour simple moving average. There is also a major bearish trend line forming with resistance near $31,400 on the hourly chart of the BTC/USD pair. On the upside, bitcoin price is facing resistance near the $31,250 level.
Source: BTCUSD on TradingView.com
The next major resistance might be near the $31,400 level. The main breakout area could be near the $32,650 area. An obvious move above the $32,400 and $32,650 levels may start a steady increase in the near term.
More losses in bitcoin?
If Bitcoin fails to clear the $32,400 resistance area, it may continue to move lower. There is immediate support on the downside near the $30,500 level.
The next major support appears near the $30,000 level. A bearish breakout and a close below the $30,000 support could start another decline. The next major support could be $29,500, below which the bears may seek to move towards the $28,800 support area.
Hourly MACD – The MACD is now gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Key support levels – $30,500, followed by $30K.
The main resistance levels are $31,250, $32,400 and $32,650.