Bitcoin price surged to $30,800 before the bears appeared. BTC is now correcting gains, but dips could be attractive near the USD 28,800 zone.
- Bitcoin is currently correcting gains from the USD 30,800 zone.
- The price is trading above $29,500 and the 100 hourly simple moving average.
- There was a break below a contiguous bullish trendline with support near USD 30,050 on the BTC/USD pair hourly chart (Kraken data feed).
- The pair could correct lower, but the bulls could be active near the $28,800 zone.
Bitcoin price rally is fading
Bitcoin price gained bullish momentum above the $29,500 resistance zone. BTC even broke the USD 30,000 resistance to move into a positive zone. However, it failed to extend its rally towards the $31,200 resistance.
A high is forming near $30,794 and the price is now correcting lower. There was a move below the $30,250 level. The price traded below the 23.6% Fib retracement level of the upward move from the $28,661 swing low to the $30,794 high.
Moreover, there was a break below a contiguous bullish trendline with support near USD 30,050 on the hourly chart of the BTC/USD pair. Bitcoin price is still trading above $29,500 and the 100 simple hourly moving average.
If the price holds steady above the $29,500 level, it could start a fresh rise soon. On the upside, the price is facing resistance near the $30,250 level. The next major resistance is near the USD 30,480 level. The main resistance is now forming around the USD 30,800 level.
Source: BTCUSD at TradingView.com
An upside break above the $30,800 resistance could trigger another rise towards the $31,200 level. The next major resistance is near the $31,500 level, above which the price could rise to the $32,000 resistance zone.
Are dips limited in BTC?
If the price of Bitcoin fails to clear the $30,480 resistance, it could fall further. Immediate downside support is near the $29,500 level. If there is a break below the $29,500 support, the price could undergo an extensive downside correction.
The next major support is near the $28,800 level or the 50% Fib retracement level of the upward move from the $28,661 swing low to the $30,794 high. Any more losses could send the price to $28,200 in the near term.
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 near the 50 level.
Key Support Levels – $29,500 followed by $28,800.
Major resistance levels – $30,250, $30,480 and $30,800.