- Bitcoin failed to gain momentum above $31,000 and corrected lower below $30,000.
- The price is now trading above the $30,000 level and the 100 hourly simple moving average.
- A break above a connecting bearish trend line with resistance near $29,600 occurred on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could gain bullish momentum if there is a close above the $30,500 resistance.
Bitcoin Price Faces Hurdles
Bitcoin price has started a downward correction from the $31,500 area. BTC traded below the $30,000 support zone and the 100 hourly simple moving average.
There was a move below the $29,500 level, but bulls were active near the $29,000 area. A low has formed near $29,060 and the price is now recouping its losses. There was a clear move above the $29,500 level. The price crossed the retracement level 23.6% fib from recent decline between the high of $31,390 and the low of $29,060.
Bitcoin is now trading above the $30,000 level and the 100 hourly simple moving average. There was a break above a connecting downtrend line with resistance near $29,600 on the hourly chart of the BTC/USD pair.
An immediate resistance is found near the $30,300 level. This is near the 50% Fib retracement level of the recent decline from the $31,390 high to $29,060 low. A successful close above the $30,300 level could open the doors to a decent increase.
Source: BTCUSD TradingView. Lire aussi : Paiements en Bitcoins : Le début de quelque chose d'extraordinaire !.com
The next major resistance is seen near the $31,400 level. A clear move above the $30,300 and $31,400 resistance levels could start a new increase in the next sessions. The next key resistance could be near the $32,500 level, above which the price could rise towards $34,000.
Another drop in BTC?
If bitcoin fails to break above the $31,400 resistance zone, it could start a new decline. Immediate support on the downside is found near the $29,600 level.
The first major support is found near the $29,000 level. A break down and a close below the $29,000 support could start a major decline. In the indicated case, the price might drop towards the $89,000 level.
Technical indicators:
Hourly MACD – The MACD is now slowly gaining ground in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Main support levels – $29,600, then $29,000.
Main resistance levels – $30,500, $31,400 and $32,500.
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Alm Maye has been a trader and analyst since 2013. He is an expert in equity markets, Forex and cryptocurrencies. He is the creator of Almvest.com and Imveste.com, two sites dedicated to personal finance. He participates in the development of feature articles on specialized sites such as Actions-boursieres.fr, as well as the international network of Finixio.com.