Bitcoin Reclaims $30K, Why Bulls Face an Uphill Task
Bitcoin started another surge from the $28,500 support zone against the US dollar. BTC needs to free $30,600 to move further into positive zone.
Bitcoin established a base above USD 28,500 and started a fresh rise. The price is now trading above the $30,000 level and the 100 hourly simple moving average. A major bearish trendline is forming with resistance near $30,400 on the hourly chart of the BTC/USD pair (Kraken data feed). The pair could gain bullish momentum if it makes a clear move above USD 30,600.
Bitcoin Price Faces Resistance
Bitcoin price found support near the $28,500 zone after a steady decline. A base was formed near USD 28,600 and started a fresh rise.
There was a marked move above the USD 29,500 resistance zone and the 100 hourly simple moving average. The bulls even pushed the price above the $30,000 resistance zone. However, they now face an uphill task near the $30,600 zone.
A major bearish trendline is also forming with resistance near $30,400 on the hourly chart of the BTC/USD pair. It highs near $30,721 and the price is now consolidating gains.
The price is trading above the 23.6% Fib retracement level from the upward move from the $28,590 swing low to $30,721 high. An immediate resistance is near the USD 30,400 level. The next major resistance is near the USD 30,600 level.
Source: BTCUSD on TradingView.com
A clear move above the USD 30,400 and USD 30,600 resistance levels could spark another rise in the near term. The next key resistance could be near the $31,500 level, above which the price could gain bullish momentum.
New decline in BTC?
If bitcoin fails to gain a pace above the $30,600 resistance zone, it could start another decline. An immediate support on the downside is near the $30,000 level. The first major support is near the USD 29,800 level and the 100-hour SMA.
The next major support is near the USD 29,655 level. It is near the 50% Fib retracement level of the upward move from the $28,590 swing low to $30,721 high. A downward breach and close below the $29,650 support could spark another drop. In the mentioned case, the price could drop to the $28,500 level.
Hourly MACD – The MACD is now slowly losing pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Key support levels – $29,800, followed by $29,650.
Major resistance levels – $30,600, $31,200 and $31,500.