Bitcoin extended the decline and traded below $29,000 against the US Dollar. BTC needs to stay above the $28,500 level to avoid a sharp drop any time soon.
Bitcoin started a fresh decline from the $30,500 resistance zone. The price is now trading below the $30,000 level and the 100 hourly simple moving average. There was a break below a connecting uptrend line with support near $29,600 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair could extend the decline if there is a clear move below the $28,500 support zone.
Bitcoin price shows bearish signs
Bitcoin price failed to clear the $30,500 resistance zone and started a new rise. There was a clear move below the $29,500 and $29,000 support levels.
Furthermore, there was a break below a connecting uptrend line with support near $29,600 on the hourly chart of the BTC/USD pair. The pair is now trading below $30,000 and the 100 hourly simple moving average. It tested the $28,500 support zone.
A low is formed near $28,589 and the price is now consolidating losses. An immediate resistance is near the $29,100 level. It is close to the 23.6% Fibonacci retracement level of the recent drop from the $30,742 high to $28,589 low.
Source: BTCUSD on TradingView.com
The next major resistance is near the $29,650 level. It is close to the 50 Fib retracement level of the recent drop from the $30,742 high to $28,589 low. A clear move above the $29,500 and $29,650 resistance levels could start a new rally in the near term. The next key resistance could be near the $30,500 level, above which the price could rally to $31,200.
More losses in BTC?
If Bitcoin fails to gain pace above the $29,650 resistance zone, it could continue moving lower. An immediate support on the downside is near the $28,800 level.
The next big support is near the $28,500 level. A break to the downside and a close below the $28,500 support could start a major drop. In the indicated case, the price could drop towards the $27,500 level.
Hourly MACD – The MACD is now slowly losing pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major support levels: $28,800, followed by $28,500.
Major resistance levels: $29,650, $30,000 and $30,500.
This post Bitcoin trims gains, why BTC could start a new decline
was published first on https://www.newsbtc.com/analysis/btc/bitcoin-trims-gains-29k/