Why Bitcoin Price Could Explode Above $30.6K In The Short Term?
Bitcoin started another surge from the $28,500 support zone against the US dollar. BTC could rise if there is a clear move above the USD 30,600 resistance zone.
Bitcoin formed a double bottom pattern near $28,500 and climbed higher. The price is now trading above the $30,000 level and the 100 hourly simple moving average. A major bullish trendline is forming with support near $29,800 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 may rise soon
Bitcoin price remained well above the $28,500 support zone. It appears that a double bottom pattern had formed above $28,500 before the price started another rise.
There was marked movement above the USD 29,500 resistance zone and the 100 hourly simple moving average. The price even climbed above the $30,000 resistance zone. However, the bears are still active near the $30,600 resistance zone.
The price traded as high as USD 30,500 and it is currently correcting lower. There was a move below the 23.6% Fib retracement level of the upward move from the $29,225 swing low to $30,500 high.
On the downside, a major bullish trendline is forming with support near USD 29,800 on the hourly chart of the BTC/USD pair. It is now trading above the $30,000 level and the 100 hourly simple moving average. An immediate resistance is near the $30,450 level. The next major resistance is near the USD 30,600 level.
Source: BTCUSD on TradingView.com
A clear move above the USD 30,450 and USD 30,600 resistance levels could initiate a strong rally in the near term. The next key resistance could be near the $31,500 level, above which the price could climb as high as $32,500.
New decline in BTC?
If bitcoin fails to clear 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 29,850 level and the trendline.
The trendline is near the 50% Fib retracement level of the upward move from the $29,225 swing low to $30,500 high. A clear move below the trendline could send the price towards the $28,500 support.
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 – $29,850, followed by $29,600.
Major resistance levels – $30,600, $31,200 and $31,500.