Bitcoin Price Relatively Muted – What Could Cause a Sharp Drop?

Bitcoin price is still struggling below the $29,650 zone. BTC could gain bearish momentum if it closes below the USD 29,100 support.

• Bitcoin is showing a few bearish signs below the $29,650 zone.
• The price is trading below $29,400 and the 100 Simple hourly moving average.
• A short term bullish trendline is forming with support near USD 29,320 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could drop further if it breaks the $29,250 and $29,100 support levels.

Bitcoin price stuck below $30,000

Bitcoin price remained well below the USD 30,000 resistance zone. BTC attempted an upward move in the near term, but the bears were active near the $29,650 resistance zone.

A high was formed near USD 29,657 before another drop to USD 29,250. The price is now consolidating and trading above the 23.6% Fib retracement level from its recent drop from the $29,657 swing high to the $29,250 low.

Bitcoin is now trading below $29,400 and the 100 simple hourly moving average. A short term bullish trendline is also forming with support near USD 29,320 on the hourly chart of the BTC/USD pair.

Immediate resistance is near the $29,450 level. It is close to the 50% Fib retracement level of the recent drop from the $29,657 swing high to the $29,250 low. The next major resistance is near $29,500. The main resistance is now forming near the $29,650 level.

Source: BTCUSD at TradingView.com

A close above the $29,650 resistance could send the price into the $30,000 resistance zone. More profits could change the trend and the price could rise towards USD 30,500. In the said case, the price could even rise towards USD 31,200 or even USD 32,200 in the coming days.

Lose more in BTC?

If Bitcoin fails to clear the $29,650 resistance, it could fall further. Immediate downside support is near the trendline.

The next major support is near the $29,250 level. The first major support is near $29,100. A downside break below the $29,100 level could trigger another steady decline. In the said case, the price could drop to $28,400.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

Major Support Levels – $29,250 followed by $29,100.

Major resistance levels – $29,450, $29,650 and $30,000.