Bitcoin Drops by 6% – What Could Drive Bullish Correction?

Bitcoin failed to break through $31,750 against the US dollar. BTC fell sharply and was trading below the $30,000 support level. BITCOIN began a new decline from the $31,750 level.

The price is currently trading below $30,000 and the 100 hourly simple moving average. On the hourly chart of the BTC/USD pair, there was a break below a key bullish trend line with support near $30,500. The pair may continue to fall towards $28,500 or even $28,000.

Bitcoin’s Value Dropped by 6%

Bitcoin’s price continued to rise above the $31,400 resistance level. However, BTC has yet to test the $32,000 resistance level. A high was formed near $31,725, and the price began to fall again.

The price fell sharply below the $31,000 and $30,500 support levels. Furthermore, on the hourly chart of the BTC/USD pair, there was a break below a key bullish trend line with support near $30,500. The pair is currently trading below $30,000 and the 100 hourly simple moving average.

The bears are now attempting to break through the $29,350 support zone. On the upside, immediate resistance is near $29,600. The first significant resistance is located near the $29,900 level. It is close to the 23.6 percent Fib retracement level of the recent decline from the swing high of $31,725 to the low of $29,300.

The next major resistance is around $30,120. A clear break above the $30,120 resistance level could send the price to the 50% Fib retracement level of the recent dip from the $31,725 swing high to the $29,300 low. Any further gains could shift the bias, and the Bitcoin price could reach $31,200.

More Bitcoin Losses?

If Bitcoin does not recover above the $30,000 resistance level, it may continue to drop. On the lower side, there is immediate support near $29,200.

The next major support is around $28,500. A break below the $28,500 support level may trigger another decline. In the aforementioned scenario, the price could fall towards the $27,200 support zone in the near term. Good luck!