Bitcoin started a fresh increase after continuing to trade well above the $29,350 support zone and surpassed the $30,000 resistance zone. According to technical analysis by Aayush Jindal of NewsBTC:
Bitcoin Aims Higher
Bitcoin started a fresh increase after trading near the key $29,350 support zone. There was a clear move above the $29,800 and $30,000 resistance levels. Besides, there was a break above a major bearish trend line with resistance near $29,700 on the hourly chart of the BTC/USD pair. The pair settled above the $30,000 level and the 100 hourly simple moving average. There was an increase above the 50% Fib retracement level of the decline from the $32,400 high to $29,255 low.
An immediate resistance is near the $31,180 level. This is close to the 61.8% Fib retracement level of the drop from the $32,400 high to $29,255 low. The next major resistance is near the $31,650 level. A clear move above the $31,650 resistance level could start another increase. In the indicated case, it could rally towards the $32,400 resistance. The next major resistance is near the $33,000 level.
Are Drops Limited?
Jindal says that if Bitcoin fails to break through the $31,180 resistance zone, it could correct to the downside. An immediate support on the downside is near the $30,400 level. The next major support is near the $29,950 level and the 100 hourly simple moving average. A downside break below the $29,950 support might trigger another decline. In the indicated case, the price could revisit the $29,350 support zone in the near term.
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 – 30,400 then $29,950
- Major Resistance Levels – 31,180, 31,650 and 32,400
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