Bitcoin attempted a rally wave above the $30,000 resistance against the US Dollar. BTC is struggling near $31,000 and could start a new decline.
Bitcoin rallied above the $30,000 level but struggled above $31,000. The price is now well above the $30,000 level and the 100 hourly simple moving average. There is a key bullish trend line forming with support near $30,400 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair could start a new decline if it breaks above the $30,000 support zone
Bitcoin Price Faces Hurdles
Bitcoin price started a decent recovery wave from the $25,000 support zone. BTC gained pace for a move above the $28,000 level and the 100 hourly simple moving average.
It even cleared the $30,000 resistance zone. However, the bulls struggled to stay in action above the $31,000 level. A high is formed near $31,390 and the price is now slowing down and moving lower. There was a move below the $31,000 level.
Bitcoin moved below the 23.6% Fib retracement level of the upward move from the $28,600 low to $31,390 high. The price is now approaching the $30,400 support.
There is also a key uptrend line forming with support near $30,400 on the hourly chart of the BTC/USD pair. The next big support is near the $30,000 zone. It is near the 50% Fib retracement level of the up move from the $28,600 low to $31,390 high.
Source: BTCUSD on TradingView.com
A break to the downside and a close below the $30,000 support could start a major drop. In the indicated case, the price could drop towards the $29,000 level. The next major support is near the $28,000 level, below which the price could start a new bearish wave.
More advantages in BTC?
If bitcoin sustains above the $30,000 support zone, it could start a fresh rise. An immediate resistance on the upside is near the $31,000 level.
The next major resistance is near the $31,400 level. A clear move above the $31,000 and $31,400 resistance levels could start a fresh rise in the coming sessions. The next key resistance could be near the $32,500 level, above which the price could rally above $33,000.
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 nowhere near the 50 level.
Major support levels: $30,400, followed by $30,000.
Major Resistance Levels – $31,000, $31,400 and $32,500.
This post Why Bitcoin is still at risk of a further drop below $29K
was published first on https://www.newsbtc.com/analysis/btc/ta-why-bitcoin-still-at-risk-of-a-fresh-decline-below-29k/
