Bitcoin failed to continue above $31,750 against the US Dollar. BTC declined sharply and traded below the $30,000 support area.
- Bitcoin started a fresh decline from the $31,750 area.
- The price is now trading below the $30,000 level and the 100 hourly simple moving average.
- There was a break below a major bullish trend line with support near $30,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair can continue to move down towards $28,500 or $28,000.
Bitcoin Price Drops 6%
Bitcoin price climbed above the $31,400 resistance area. However, BTC also struggled to test the $32,000 resistance area. A high was formed near $31,725 and the price started a fresh decline.
There was a strong move below the $31,000 and $30,500 support levels. Besides, there was a break below a major bullish trend line with support near $30,500 on the hourly chart of the BTC/USD pair. The pair is now trading below the $30,000 level and the 100 hourly simple moving average.
The bears are now trying to make a clear move below the $29,350 support area. An immediate upside resistance is near the $29,600 level. The first major resistance is near the $29,900 level. It is near the 23.6% Fib retracement level of the recent decline from the $31,725 high to $29,300 low.
Source: BTCUSD on TradingView.com
The next major resistance is near the $30,120 level. A clear move above the $30,120 resistance level could send the 50% Fib retracement level of the recent decline from the $31,725 high to $29,300 low. Any further gains could turn the bias and bitcoin price higher towards the $31,200 level.
More losses in BTC?
If bitcoin fails to rise above the $30,000 resistance area, it is likely to continue lower. On the downside, immediate support is near the $29,200 level.
The next major support is near the $28,500 level. There could be another downside break below the $28,500 support. In this case, the price is likely to decline towards the $27,200 support area in the near term.
Hourly MACD – The MACD is now gaining momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well below the 40 level.
Key Support Levels – $29,000, followed by $28,500.
Major resistance levels – $29,900, $30,120 and $30,500.