Why Bitcoin Still At Risk of A Fresh Decline Below $29K


Bitcoin attempted a wave of recovery above the $30,000 resistance level against the US Dollar. BTC is struggling near $31,000 and may start a new low.

  • Bitcoin recovered above the $30,000 level but struggled above $31,000.
  • The price is now well above the $30,000 level and the 100 hourly simple moving average.
  • There is a major bullish trend line forming with support near $30,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair can start a new decline if it clears the $30K support area

Bitcoin price faces hurdles

Bitcoin price started a good recovery wave from $25,000 support area. BTC gained pace to move above the $28,000 level and the 100 hourly simple moving average.

He even deleted a file $30,000 resistance area. However, the bulls struggled to stay in the business above the $31,000 level. A top formed near $31,390 and the price is now slowing down and it is moving lower. There was a move below the $31,000 level.

Bitcoin moved below the 23.6% Fib retracement level of the upward move from $28,600 to $31,390. The price is now approaching the $30,400 support.

There is also a major bullish trend line forming with support near $30,400 on the hourly chart of the BTC/USD pair. The next major support is near the $30,000 area. It is close to the 50% Fib retracement level of the upward move from $28,600 to $31,390.

Bitcoin price

Source: BTCUSD on TradingView.com

A bearish breakout and a close below the $30,000 support could start a significant decline. In the mentioned case, the price may drop towards the $29,000 level. The next major support is near the $28,000 level, below which the price may start a new descending wave.

More positives in Bitcoin?

If Bitcoin stays above the $30K support area, it may start a new rally. There is an immediate resistance on the upside near the $31,000 level.

The next major resistance is near the $31,400 level. A clear move above the $31,000 and $31,000 resistance levels may start a new increase in the upcoming sessions. The next major resistance could be near the $32,500 level, above which the price could rise above $33,000.

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 not near the 50 level.

Key support levels – $30,400, followed by $30K.

The main resistance levels are $31,000, $31,400 and $32,500.



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