Bitcoin Recovers Above $30K – A Quick Technical Outlook
Bitcoin is falling against the US dollar, approaching the key support level of $29,500. To avoid a significant drop, Bitcoin must remain above $29,500. Bitcoin is struggling to maintain its price above the $29,500 support level. The price currently trades below $30,500 and the 100 hourly simple moving average.
On the hourly timeframe of the BTC/USD pair, a key contracting triangle is forming with resistance near $31,050. A significant decline could begin if the pair breaks below the $29,500 support.
Is Bitcoin Showing Bearish Signs?
Bitcoin’s price has failed to break through the $31,200 and $31,500 resistance levels. But there was no clear change, and the price started going down again below $31,000.
A move below the $30,850 and $30,500 support levels occurred. The price fell below $30,000 before settling below the 100 hourly simple moving average. It traded near the $29,500 support level and made a low of $29,561.
Bitcoin has recovered its losses and is trading above the $29,800 mark. On the upside, immediate resistance is near the $30,030 level. It is near the 23.6 percent Fib retracement level of the recent drop from the swing high of $31,550 to the low of $29,561.
The first significant resistance is located near the $30,500 level and the 100 hourly SMA. It is close to the 50% Fib retracement level of the recent drop from the $31,550 swing high to the $29,561 low.
The major resistance is around $31,000. On the hourly timeframe of the BTC/USD pair, a key contracting triangle is forming with resistance near $31,050. A clear break above the $31,050 resistance level could propel the price even higher. The next major resistance level could be $31,500, above which the price could rise steadily.
BTC Downside Break?
If bitcoin fails to break through the $31,050 resistance level, it may fall further. On the downside, there is immediate support near $29,650.
The next major support is around $29,500. A break below the $29,500 support level could put the bulls under a lot of pressure. In the aforementioned scenario, the price could fall in the near term to the $28,500 support zone. Good luck!
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