Bitcoin Has Major Support, Why BTC Needs To Clear This Resistance
Bitcoin corrected lower and tested the USD 29,000 support against the US dollar. BTC needs to settle above the USD 30,500 resistance to start a decent rise.
Bitcoin failed to gain pace above $31,000 and corrected below $30,000. The price is now trading above the $30,000 level and the 100 hourly simple moving average. There was a break above a connecting bearish trendline with resistance near $29,600 on the hourly chart of the BTC/USD pair (Kraken data feed). The pair could gain bullish momentum if it closes above the USD 30,500 resistance.
Bitcoin Price Faces Hurdles
Bitcoin price started a downward correction from the $31,500 zone. BTC traded below the $30,000 support zone and the 100 hourly simple moving average.
There was a move below the USD 29,500 level, but the bulls were active near the USD 29,000 zone. A low is being formed near $29,060 and the price is now recovering losses. There was a marked move above the USD 29,500 level. The price cleared the 23.6% Fib retracement level from the recent drop from the $31,390 swing high to $29,060 low.
Bitcoin is now trading above the $30,000 level and the 100 hourly simple moving average. There was a break above a connecting bearish trendline with resistance near $29,600 on the hourly chart of the BTC/USD pair.
An immediate resistance is near the USD 30,300 level. It is near the 50% Fib retracement level from the recent drop from the $31,390 swing high to $29,060 low. A successful close above the USD 30,300 level could open the doors for some decent gains.
Source: BTCUSD on TradingView.com
The next major resistance is near the USD 31,400 level. A clear move above the USD 30,300 and USD 31,400 resistance levels could spark another rise in the coming sessions. The next key resistance could be near the USD 32,500 level, above which the price could climb towards USD 34,000.
New decline in BTC?
If bitcoin fails to pace above the $31,400 resistance zone, it could start another decline. An immediate support on the downside is near the USD 29,600 level.
The first major support is near the USD 29,000 level. A downward breach and close below the $29,000 support could trigger a major drop. In the said case, the price could drop to the $89,000 level.
Hourly MACD – The MACD is now slowly 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 – $29,600, followed by $29,000.
Major resistance levels – $30,500, $31,400 and $32,500.