Bitcoin stays in a positive zone above $31,200. According to technical analysis by NewsBTC’s Aayush Jindal, BTC may correct the decline but the bulls may remain active around $30,800.
Bitcoin Faces Major Resistance
Bitcoin took its rise above the $31,000 region. It even broke the $32,000 resistance a few times but the bears retained more gains above $32,200. BTC settled as high as $32,400 before starting a downside correction. Thereafter, there was a move below the $32,000 level and it corrected and tested the 23.6% Fib retracement level of the upward move from the $29,085 high to $32,400 high.
BTC is currently testing the $31,800 region. There is also a key bullish trend line forming with support near $31,800 on the hourly chart of the BTC/USD pair. Bitcoin is also well above the $31,200 level and the 100 hourly simple moving average.
An immediate upside resistance is near the $32,000 level. The next major resistance is near the $32,200 and $32,400 levels. A clear move above the $32,400 resistance level could start another increase. In the indicated case, the price could rally towards the $32,500 resistance. The next major resistance is near the $33,400 level.
Are Drops Limited?
Jindal says that if Bitcoin fails to break past the $32,400 resistance zone, it could start a downside correction. An immediate support is near the $31,800 level and the trend line. A downside break below the trend line could lead the price towards the $30,800 support. The 50% Fib retracement level of the rise from the $29,085 high to $32,400 high is also near the $30,800 level. Any further gains could open the doors for a move towards the $30,000 support.
What Do Technical Indicators Say?
- Hourly MACD – The MACD is now losing momentum in the bullish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is falling towards the 50 level.
- Major Support Levels – 31,800 followed by $30,800
- Major Resistance Levels – $32,000, 32,200 and 32,400
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