Bitcoin Recovers Above $30K – What Could Drive Further Sell-off?
Skerdian Meta • 2 min read
Bitcoin dropped below the $25,000 support level against the US dollar and is now on the mend and could break above the critical $30,000 resistance zone. Bitcoin found support above $25,000 and began an uptrend. The price remains below $30,000 and the 100 hourly simple moving average.
On the hourly chart of the BTC/USD pair, a major bearish trend line with resistance near $30,000 is forming. The pair must break through the $30,000 barrier to enter the positive zone and begin a genuine recovery.
Bitcoin’s Price Has Begun to Rise
BITCOIN price remained bearish, trading below the $30,000 support level, BTC continued to fall and was trading below the $28,000 mark.
A spike below $26,000 occurred, and the price traded to a new multi-month low of $25,332. A base was formed above $25,000, and the price began a new upward movement. The price broke through the $26,500 and $27,500 resistance levels.
The price has risen above the 50% Fib retracement level of the recent drop from the $32,130 swing high to the $25,332 low; however, it remains below $30,000 and the 100 hourly simple moving average.
On the hourly timeframe of the BTC/USD pair, a major bearish trend line with resistance near $30,000 is also forming. The next significant resistance is near $30,500 and the 100 hourly simple moving average. It is close to the 76.4 percent Fib retracement level of the recent decline from the swing high of $32,130 to the low of $25,332.
A clear break above the $30,000 and $30,500 resistance levels could kick-start a new uptrend in the coming sessions. The next major resistance level could be near $31,500, after which the price could rise above $32,000.
Bitcoin Price Drop?
If Bitcoin fails to break through the $30,000 resistance level, it may begin a new decline. On the downside, there is immediate support near the $28,800 level.
The next significant support is seen near $27,650. A break and close below the $27,650 support level may accelerate losses. The next major support level could be $26,200, below which the bears could aim for the $25,500 support zone. Good luck!