Bitcoin Trims Gains, Why BTC Could Start Fresh Decline


Bitcoin extended its decline and traded at less than $29,000 against the US dollar. BTC must stay above $28,500 to avoid a sharp drop in the near term.

  • Bitcoin started a new decline from the $30,500 resistance area.
  • The price is now trading below the $30,000 level and the 100 hourly simple moving average.
  • There was a break below the connecting uptrend line with support near $29,600 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could extend its decline if there is a clear move below the $28,500 support area.

Bitcoin Price Shows Bearish Signals

Bitcoin Price Failed to Clear File $30,500 resistance area And started a new increase. There was a clear move below the $29,500 and $29,000 support levels.

Besides, there was a break below the connecting uptrend line with support near $29,600 on the hourly chart of the BTC/USD pair. The pair is now trading under $30,000 and 100-hour simple moving average. It tested the $28,500 support area.

A bottom was formed near $28.589 and the price is now consolidating losses. There is an immediate resistance near the $29,100 level. It is near the 23.6% Fib retracement level of the recent decline from the $30,742 high to $28,589.

Bitcoin price

Source: BTCUSD on TradingView.com

The next major resistance is near the $29,650 level. It is near the 50 Fib retracement level of the recent decline from $30,742 to the low of $28,589. A clear move above the $29,500 and $29,650 resistance levels may start a new increase in the near term. The next major resistance could be near the $30,500 level, above which the price could rise towards $31,200.

More losses in bitcoin?

If Bitcoin fails to accelerate above the $29,650 resistance area, it may continue to decline. There is immediate support on the downside near the $28,800 level.

The next major support is near the $28,500 level. A break-down and a close below the $28,500 support level could start a significant decline. In the mentioned case, the price could drop towards the $27,500 level.

Technical indicators:

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

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

Key support levels – $28,800, followed by $28,500.

Key resistance levels – $29,650, $30,000, and $30,500.



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