Bitcoin Gaining Momentum, Why Breaking Above $30K Is Crucial
Bitcoin plunged towards the $25,000 support zone against the US dollar. BTC is now recovering and could see an upward breach above the key $30,000 resistance zone.
Bitcoin found support above $25,000 and started an upward correction. The price is still trading below $30,000 and the 100 simple hourly moving average. A major bearish trendline is forming with resistance near $30,000 on the hourly chart of the BTC/USD pair (Kraken data feed). The pair needs to break the $30,000 barrier to get into positive zone and start a real recovery.
Bitcoin Price Begins to Recover
Bitcoin price remained in a bearish zone below the $30,000 support zone. BTC extended its decline and traded below the $28,000 level.
It peaked below the $26,000 level and the price traded towards a new multi-month low at $25,332. A base was formed above $25,000 and the price started another upward move. There was a definite move above the USD 26,500 and USD 27,500 resistance levels.
The price climbed above the 50% Fib retracement level from the recent drop from the $32,130 swing high to $25,332 low. However, it is still trading below $30,000 and the 100 simple hourly moving average.
A major bearish trendline is also forming with resistance near $30,000 on the hourly chart of the BTC/USD pair. The next major resistance is near the $30,500 zone and the 100 hourly simple moving average. It is near the 76.4% Fib retracement level from its recent decline from the $32,130 swing high to $25,332 low.
Source: BTCUSD on TradingView.com
A clear move above the $30,000 and $30,500 resistance levels could spark another rise in the coming sessions. The next key resistance could be near the $31,500 level, above which the price could rise above $32,000.
New decline in BTC?
If bitcoin fails to clear the $30,000 resistance zone, it could start another decline. An immediate support on the downside is near the USD 28,800 level.
The next major support is seen near the USD 27,650 level. A downward breach and close below the $27,650 support could accelerate losses. The next big support could be USD 26,200, below which the bears could target a move towards the USD 25,500 support zone.
Hourly MACD – The MACD is now gaining pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Key support levels – $28,200, followed by $27,650.
Major resistance levels – $30,000, $30,500 and $31,500.