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TA: Bitcoin Turns Bearish, Risk of Drop Below $29K

NewsBTC

Cryptocoins News / NewsBTC 153 Views

Bitcoin failed to continue higher above $31,750 against the US Dollar. BTC declined sharply and traded below the $30,000 support zone.

  • Bitcoin started a fresh decline from the $31,750 region.
  • The price is now trading below the $30,000 level and the 100 hourly simple moving average.
  • There was a break below a key bullish trend line with support near $30,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could continue to move down towards $28,500 or even $28,000.

Bitcoin Price Dives 6%

Bitcoin price extended increase above the $31,400 resistance zone. However, BTC struggled to even test the $32,000 resistance zone. A high was formed near $31,725 and the price started a fresh decline.

There was a strong move below the $31,000 and $30,500 support levels. Besides, there was a break below a key bullish trend line with support near $30,500 on the hourly chart of the BTC/USD pair. The pair is now trading below the $30,000 level and the 100 hourly simple moving average.

The bears are now attempting a clear move below the $29,350 support zone. An immediate resistance on the upside is near the $29,600 level. The first major resistance is near the $29,900 level. It is near the 23.6% Fib retracement level of the recent decline from the $31,725 swing high to $29,300 low.

Bitcoin Price

Source: BTCUSD on TradingView.com

The next major resistance is near the $30,120 level. A clear move above the $30,120 resistance level could send the price towards the 50% Fib retracement level of the recent decline from the $31,725 swing high to $29,300 low. Any more gains might change the bias and bitcoin price could rise towards the $31,200 level.

More Losses in BTC?

If bitcoin fails to recover above the $30,000 resistance zone, it could continue to move down. An immediate support on the downside is near the $29,200 level.

The next major support is near the $28,500 level. A downside break below the $28,500 support may perhaps spark another decline. In the stated case, the price could dive towards the $27,200 support zone in the near term.

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 now well below the 40 level.

Major Support Levels – $29,000, followed by $28,500.

Major Resistance Levels – $29,900, $30,120 and $30,500.

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