Why Bitcoin Is Still At Risk Of Another Drop Below $29K


Bitcoin attempted a surge of recovery above the $30,000 resistance against the US dollar. BTC is struggling near $31,000 and could start another decline.

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 simple hourly moving average. A major bullish trendline is forming with support near $30,400 on the hourly chart of the BTC/USD pair (Kraken data feed). The pair could start another decline if it clears the $30,000 support zone

Bitcoin Price Faces Hurdles

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

It even cleared the $30,000 resistance zone. However, the bulls struggled to stay in action above the $31,000 level. A high is formed near $31,390 and the price is now slowing down. There was a move below the $31,000 level.

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

A major bullish trendline is also forming with support near $30,400 on the hourly chart of the BTC/USD pair. The next big support is near the $30,000 zone. It is near the 50% Fib retracement level of the upward move from the $28,600 swing low to $31,390 high.

Source: BTCUSD on TradingView.com

A downward breach and close below the $30,000 support could trigger a big drop. In the mentioned case, the price could drop to the $29,000 level. The next major support is near the $28,000 level, below which the price could start another bearish wave.

More benefits in BTC?

If bitcoin stays above the $30,000 support zone, it could start another rise. An immediate resistance on the upside is near the $31,000 level.

The next major resistance is near the USD 31,400 level. A clear move above the $31,000 and $31,400 resistance levels could spark another rise in the coming sessions. The next key 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 close to the 50 level.

Key support levels – $30,400 followed by $30,000.

Major resistance levels – $31,000, $31,400 and $32,500.

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