Bitcoin started a fresh rise from the $28,500 support zone against the US Dollar. BTC could rally if there is a clear move above the $30,600 resistance zone.
Bitcoin formed a double bottom pattern near $28,500 and moved higher. The price is now trading above the $30,000 level and the 100 hourly simple moving average. There is a key bullish trend line forming with support near $29,800 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair could gain some upside momentum if there is a clear move above $30,600.
Bitcoin price could recover soon
Bitcoin price remained well above the $28,500 support zone. It looks like a double bottom pattern formed above $28,500 before the price started a fresh rise.
There was a clear move above the $29,500 resistance zone and the 100 hourly simple moving average. The price even broke above the $30,000 resistance zone. However, the bears are still active near the $30,600 resistance zone.
The price traded as high as $30,500 and is currently correcting lower. There was a move below the 23.6% Fibonacci retracement level of the up move from the $29,225 low to $30,500 high.
On the downside, there is a key uptrend line forming with support near $29,800 on the hourly chart of the BTC/USD pair. It is now trading above the $30,000 level and the 100 hourly simple moving average. An immediate resistance is near the $30,450 level. The next major resistance is near the $30,600 level.
Source: BTCUSD on TradingView.com
A clear move above the $30,450 and $30,600 resistance levels could start a strong rally in the near term. The next key resistance could be near the $31,500 level, above which the price could rally to $32,500.
New drop in BTC?
If bitcoin fails to clear the $30,600 resistance zone, a new decline could start. An immediate support on the downside is near the $30,000 level. The first major support is near the $29,850 level and the trend line.
The trend line is near the 50% Fib retracement level of the up move from the $29,225 low to $30,500 high. A clear move below the trend line could send the price towards the $28,500 support.
Hourly MACD – The MACD is now slowly losing pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Major Support Levels – $29,850, followed by $29,600.
Major resistance levels: $30,600, $31,200 and $31,500.
This post Why Bitcoin Price Could Explode Above $30.6K Any Time Soon
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