Bitcoin remained strong above the $28,500 support. According to technical analysis from NewsBTC’s Aayush Jindal:
Bitcoin Has Formed a Triple Bottom
Bitcoin extended its decline below the $29,500 support zone. However, the bulls were active near the main $28,500 support area. A fresh bottom was formed near $28,600 and the price started a fresh increase. There was a clear move above the $29,200 and $29,500 resistance levels. The price surpassed the 50% Fib retracement level of the decline from the $30,630 high to $28,635 low.
Moreover, there was a break above a major bearish trend line with resistance near $29,800 on the hourly chart of the BTC/USD pair. Bitcoin price is now trading above the $29,500 level and the 100 hourly simple moving average.
An immediate resistance is near the $30,160 level. This is near the 76.4% Fib retracement level of the bearish move from the $30,630 high to $28,635 high. The next major resistance is near the $30,600 level. A clear move above the $30,600 resistance level could start a decent increase. In the stated case, the price could surpass the $31,200 resistance zone.
Will Bitcoin Drop Again?
Jindal says that if Bitcoin fails to break through the $30,600 resistance zone, it could start another decline. An immediate support on the downside is near the $29,600 level. The first major support is near the $29,500 level and the 100 hourly simple moving average. A downside break below the $29,500 support could push the price down further. The main support is still near the $28,500 level, where the bulls are likely to take a strong stance.
What Do Technical Indicators Say?
- Hourly MACD – The MACD is now gaining momentum in the bullish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently well above the 50 level.
- Major Support Levels – 29,500 followed by $28,500
- Major Resistance Levels – 30,150, 30,500 and 30,600
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