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Bitcoin Price Next Leg Lower Underway And At Risk for Key Reasons
Bitcoin price is moving lower from the $30,200 zone. BTC is signaling a fresh decline and there is a risk of a drop toward the $28,500 support.
Bitcoin Price Trims Gains
Bitcoin price faced another rejection above the $30,000 resistance zone. A high was formed near $30,190 and BTC reacted to the downside. There was a move below the $30,000 and $29,800 levels.
The price declined below the 50% Fib retracement level of the key increase from the $28,628 swing low to the $30,190 high. It seems like the bulls are now putting up some fight near the $29,300 zone. Bitcoin is now trading below $29,500 and the 100 hourly Simple moving average.
There is also a connecting bearish trend line forming with resistance near $29,450 on the hourly chart of the BTC/USD pair. If there is a fresh increase, the pair could face resistance near the 100 hourly Simple moving average at $29,400.
Source: BTCUSD on TradingView.com
The next major resistance is near the trend line and $29,500. A close above the trend line could start a decent increase toward $30,000. To spark a steady uptrend, the price must settle above the $30,000 resistance. In the stated case, the price could rise toward $31,200 or even $32,000 in the coming days.
More Losses In BTC?
If Bitcoin fails to clear the $29,500 resistance, it could continue to move down. Immediate support on the downside is near the $29,320 level.
The next major support is near the $29,220 level or the 61.8% Fib retracement level of the key increase from the $28,628 swing low to the $30,190 high. A downside break below the $29,220 level might spark bearish moves. In the stated case, the price could revisit $29,000. Any more losses might call for a move toward the $28,500 level in the near term.
Technical indicators:
Hourly MACD – The MACD is now gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major Support Levels – $29,220, followed by $29,000.
Major Resistance Levels – $29,400, $29,500, and $30,000.