Bitcoin started a fresh decline yesterday from the $32,400 resistance. According to technical analysis by NewsBTC’s Aayush Jindal, Bitcoin needs to stay above $29,450 to avoid further declines.
Bitcoin Erases Gains
Bitcoin fell sharply below the $32,000 and $31,500 levels. More importantly, there was a break below a key bullish trend line with support near $31,750 on the hourly chart of the BTC/USD pair. The pair traded below the 50% Fib retracement level of the upward move from the $28,250 high to $32,400 high.
Bitcoin price is currently trading below the $30,000 level and the 100 hourly simple moving average. The price is also consolidating near the 61.8% Fib retracement level of the upward move from the $28,250 high to $32,400 high.
An immediate resistance is near the $30,000 level. The next major resistance is near $30,400 and the 100 hourly simple moving average. A clear move above the $30,400 resistance level could start another rise. In the indicated case, the price could rally towards the $30,800 resistance. The next major resistance is near the $32,000 level.
Will Bitcoin Drop More?
Jindal says that if Bitcoin fails to break through the $30,400 resistance zone, it may continue to move lower. An immediate support is near the $29,450 level. The next major support is near the $29,250 level. A downside break below the $29,250 support might put a lot of pressure on the bulls. In the indicated case, the price could revisit the $28,250 support zone. Any more losses could lead the price towards the $27,500 level.
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 correcting above the 30 level.
- Major Support Levels – 29,450 followed by $28,250
- Major Resistance Levels – $30,000, 30,400 and 30,800
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