The Bitcoin cryptocurrency, noted for its volatility, is showing a trend towards declining prices from its $30,350 rates. A closer analysis of BTC indicators hints at a further fall, possibly to the $29,650 and $29,500 support zones. This leans towards bearish inclinations, providing critical insights for potential investors and existing holders of Bitcoin.
Main Observations
- Bitcoin‘s trajectory is shifting to lower territories, falling below the $30,000 pivot level.
- Currently, BTC is trading below the cost of $30,000 as well as a 100-hour Simple Moving Average (SMA).
- Importantly, a bullish trend line is forming on the hourly chart of the BTC/USD pair, indicating support near $29,720 (data obtained from Kraken).
- If current conditions persist, the pair may experience a continued decline, potentially breaching the $29,500 support zone.
Bitcoin Price Trends
The latest attempt by Bitcoin to exceed the $30,400 resistance zone resulted in a struggle to clearly surpass the $30,350 level, after which a fresh decline ensued.
Bearish reactions sprang forth below the $30,000 support zone and the 100-hour SMA. As a result, the price dropped below the 61.8% Fib retracement level (Bitcoin had previously moved upward from the $29,650 swing low to a high of $30,333).
Bitcoin is at present trading below both $30,000 and the 100-hour SMA. A noticeable bullish trend line is underway, with the hourly chart of the BTC/USD pair illustrating support near $29,720.
Resistance and Support Levels
- An immediate resistance layer is anticipated close to the $30,000 mark and the 100-hour SMA.
- The primary substantial resistance lies at the $30,150 level.
- Additional significant resistance is pinpointed at the $30,350 and $30,400 thresholds.
- If Bitcoin can surpass the $30,400 threshold, it could instigate a renewed rise.
source: BTCUSD on TradingView.com
In the projected scenario, a price hike towards the $30,850 zone could happen. Any further gains may pave the way for a leap towards the resistance area of $31,200.
Potential New Bitcoin Low?
However, failure by Bitcoin to defy the $30,000 resistance could steer its path downwards. Immediate support on the base is predicted around the $29,720 mark, not far from the trend line.
- The next vital support is situated close to the $29,650 threshold. If this is breached, the price could revisit the essential support level of $29,500.
- If Bitcoin cannot maintain its stance above the $29,500 support, it may have bearish ambitions for a new low below $29,200.
- Should further losses be incurred, they might invoke a shift towards the $28,200 range in the short run.
Technical Indicators
- Hourly MACD – The MACD is gaining momentum in the bearish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD has dropped below the 50 mark.
- Major Support Levels – $29,650, swiftly followed by $29,500.
- Major Resistance Levels – $30,000, $30,150, and $31,400.