Bitcoin is falling towards the key support of $29,500. According to technical analysis by NewsBTC’s Aayush Jindal, it needs to stay above $29,500 to avoid a major downside break.
Bitcoin Shows Bearish Signs
Bitcoin failed to gain strength above the $31,200 and $31,500 resistance levels once again and started a fresh decline. There was a move below the $30,850 and $30,500 support levels. The price even settled below the $30,000 level and settled below the 100 hourly simple moving average. It traded close to the $29,500 support zone and formed a bottom at $29,561.
Bitcoin is now consolidating its losses and is trading above the $29,800 level. An immediate resistance is near the $30,030 level. This is close to the 23.6% Fib retracement level of the recent drop from the $31,550 high to $29.561 low. The first major resistance is near the $30,500 level and the 100 hourly SMA. This is close to the 50% Fib retracement level of the recent decline from the $31,550 low to $29.561 low.
The main resistance is still near the $31,000 level. There is also a key contracting triagle forming with resistance near $31,050 on the hourly chart of the BTC/USD pair. A clear move above the $31,050 resistance could push the price higher. The next major resistance could be $31,500 above which the price could start a decent rise.
Will Bitcoin Drop More?
Jindal says that if Bitcoin fails to break through the $31,050 resistance zone, it could start another decline. An immediate support is near the $29,650 level. The next major support is near the $29,500 level. A downside break below the $29,500 support might put a lot of pressure on the bulls. In the stated case, the price could decline to the $28,500 support zone in the near term.
What Do Technical Indicators Say?
- Hourly MACD – The MACD is now losing momentum in the bearish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently below the 50 level.
- Major Support Levels – 29,800 followed by $29,500
- Major Resistance Levels – $30,500, 31,050 and 31,500
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