Bitcoin failed to rise above $31,750 and declined below the $30,000 support zone again. According to technical analysis by Aayush Jindal of NewsBTC:
Bitcoin Drops 6%
Bitcoin climbed above the $31,400 resistance area and even struggled to test the $32,000 resistance area. However, a top was formed near $31,725 and it started a fresh decline from there. There was a strong move below the $31,000 and $30,500 support levels
. There was also a break below a key bullish trend line with support near $30,500 on the hourly chart of the BTC/USD pair. The pair is now trading below the $30,000 level and the 100 hourly simple moving average.
The bears are now trying to make a clear move below the $29,350 support zone. An immediate resistance on the upside is near the $29,600 level. The first major resistance is near the $29,900 level. This is close to the 23.6% Fib retracement level of the drop from the $31,725 low to $29,300 low.
The next major resistance is near the $30,120 level. A clear move above the $30,120 resistance level could send the price towards the 50% Fib retracement level of the recent decline from the $31,725 high to $29,300 high. Any further gains could change the bias and push Bitcoin price towards the $31,200 level.
Will Bitcoin Drop More?
Jindal says that if Bitcoin fails to break above the $30,000 resistance zone, it may continue to move lower. An immediate support on the downside is near the $29,200 level. The next major support is near the $28,500 level. A downside break below the $28,500 support might trigger another decline. In the stated case, the price could decline towards the $27,200 support zone in the near term.
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 well below the 40 level.
- Major Support Levels – $29,000 followed by $28,500
- Major Resistance Levels – $29,900, 30,120 and $30,500
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