Bitcoin attempted a recovery wave above $32,000. BTC is struggling but risks more losses below $30,000, according to technical analysis by NewsBTC’s Aayush Jindal.
Bitcoin Faces Barriers
Recently, Bitcoin even tested the $30,000 support zone and dropped to $29,755. Thereafter, there was an upside correction above the $31,000 level. It managed to climb above the 23.6% Fib retracement level of the low from the $36,059 low to $29,755 low. The bulls managed to push the price above the $32,000 resistance. However, they encountered a strong resistance near the $32,650 zone. Bitcoin remained below the 50% Fib retracement level of the decline from the $36,059 high to $29,755 low.
Price is currently trading below the 100 hourly simple moving average at $31,500. There is also a major bearish trend line forming with resistance near $31,400 on the hourly chart of the BTC/USD pair. It is facing a resistance near the $31,250 level.
The next key resistance could be near the $31,400 level. The key breakout zone could be near the $32,650 region. A clear move above the $32,400 and $32,650 levels could start a decent upward move in the near term.
Will Bitcoin Drop More?
Jindal says that if Bitcoin fails to break past the $32,400 resistance zone, it may continue to move lower. An immediate support on the downside is near the $30,500 level. The next major support is seen near the $30,000 level. A downside break and close below the $30,000 support could start another decline. The next major support could be at $29,500, below which the bears could target a move towards the $28,800 support zone.
What Do Technical Indicators Say?
- Hourly MACD – The MACD is now gaining momentum in the bearish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently below the 50 level.
- Major Support Levels – 30,500 then $30,000
- Major Resistance Levels – 31,250, 32,400 and 32,650
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