Bitcoin Turns Bearish, Risk of Drop Below $29K


Bitcoin failed to continue rising above $31,750 against the US Dollar. BTC fell sharply and traded below the $30,000 support area.

  • Bitcoin started a new low from the $31,750 region.
  • The price is now trading below the $30,000 level and the 100 hourly simple moving average.
  • There was a break below the major uptrend line with support near $30,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could continue falling towards $28,500 or even $28,000.

Bitcoin price drops 6%

Bitcoin price extended its increase above $31,400 resistance area. However, BTC struggled to test the $32,000 resistance area. A high was formed near $31725 and the price started a new low.

There was a strong move below the $31,000 and $30,500 support levels. Besides, there was a break below the major uptrend line with support near $30,500 on the hourly chart of the BTC/USD pair. The pair is now trading below the $30,000 level and 100-hour simple moving average.

The bears are now attempting a clear move below the $29,350 support area. There is immediate resistance on the upside near the $29,600 level. The first major resistance is near the $29,900 level. It is close to the 23.6% Fib retracement level of the recent decline from $31.725 and the swing high to $29,300.

Bitcoin price

Source: BTCUSD on TradingView.com

The next major resistance is near the $30,120 level. A clear move above the $30,120 resistance could send the price towards the 50% Fib retracement level of the recent decline from $31,725 ​​to the swing high to $29,300. Any further gains could change the bias and bitcoin price could rise towards the $31,200 level.

More losses in bitcoin?

If Bitcoin fails to recover above the $30,000 resistance area, it may continue to decline. There is immediate support on the downside near the $29,200 level.

The next major support is near the $28,500 level. A break-down below the $28,500 support level could trigger another decline. In the mentioned case, the price could move towards the $27,200 support area in the near term.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well below the 40 level.

Key support levels – $29,000, followed by $28,500.

The main resistance levels are $29,900, $30,120 and $30,500.



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