Bitcoin Shrinks Profit, Why BTC Could Start Another Decline


Bitcoin extended its decline and traded below $29,000 against the US dollar. BTC needs to stay above the USD 28,500 level to avoid a sharp short-term decline.

Bitcoin started another decline from the $30,500 resistance zone. The price is now trading below the $30,000 level and the 100 simple hourly moving average. There was a break below a connecting bullish trendline with support near $29,600 on the hourly chart of the BTC/USD pair (Kraken data feed). The pair could extend its decline if there is significant movement below the $28,500 support zone.

Bitcoin Price Is Showing Bearish Signs

Bitcoin price failed to clear the $30,500 resistance zone and started another rise. There was a definite move below the USD 29,500 and USD 29,000 support levels.

Additionally, there was a break below a connecting bullish trendline with support near USD 29,600 on the hourly chart of the BTC/USD pair. The pair is now trading below $30,000 and the 100 hourly simple moving average. It tested the $28,500 support zone.

A low is formed near $28,589 and the price is now consolidating losses. An immediate resistance is near the USD 29,100 level. It is near the Fib retracement level of 23.6% from the recent drop from the $30,742 swing high to $28,589 low.

Source: BTCUSD on TradingView.com

The next major resistance is near the USD 29,650 level. It is near the 50 Fib retracement level from the recent drop from the $30,742 swing high to $28,589 low. A clear move above the USD 29,500 and USD 29,650 resistance levels could spark another rise in the near term. The next key resistance could be near the USD 30,500 level, above which the price could rise towards USD 31,200.

Lose more in BTC?

If bitcoin fails to gain pace above the $29,650 resistance zone, it could continue to fall. An immediate support on the downside is near the USD 28,800 level.

The next major support is near the USD 28,500 level. A downward breach and close below the $28,500 support could trigger a major drop. In the mentioned case, the price could drop to the $27,500 level.

Technical indicators:

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

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

Key support levels – $28,800, followed by $28,500.

Major resistance levels – $29,650, $30,000 and $30,500.

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