Bitcoin price corrects gains from the $31,400 zone. BTC could revisit the $29,200 support or even $28,500 before starting another increase.
- Bitcoin is currently correcting gains from the USD 31,400 zone.
- The price is trading below $30,500 and the 100 simple hourly moving average.
- A connecting bearish trendline is forming with resistance near USD 30,550 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could continue to correct lower towards $29,200 support or $28,500.
Bitcoin Price Begins Downward Correction
Bitcoin price held up well above the $29,500 resistance zone. BTC cleared the USD 30,000 resistance to move further into a positive zone. Finally, there was a push above the $31,000 zone.
The price tested the $31,500 zone. A high is forming near USD 31,435 and the price is now correcting lower. There was a move below the $30,500 level. The price was trading below the 50% Fib retracement level of the upward move from the $29,550 swing low to the $31,435 high.
Bitcoin price is now trading below USD 30,500 and the 100 Simple hourly moving average. A contiguous bearish trendline is also forming with resistance near USD 30,550 on the hourly chart of the BTC/USD pair.
The pair is trading close to the 76.4% Fib retracement level of the upward move from the $29,550 swing low to the $31,435 high. If the price holds steady above the $30,000 level, it could start a fresh rise soon. On the upside, the price is facing resistance near the $30,400 level and the 100 simple hourly moving average.
Source: BTCUSD at TradingView.com
The first major resistance is near the USD 30,550 level and trendline, above which the price could visit the USD 31,400 resistance zone. The next major resistance is near the USD 32,000 level. Any further gains could send the price towards the $32,500 resistance zone.
More downsides in BTC?
If the price of Bitcoin fails to clear the $30,550 resistance, it could fall further. Immediate downside support is near the $30,000 level.
The next major support is near the $29,550 level, below which there is a risk of a move towards the $29,200 support. Any more losses could send the price to $28,500 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 below the 50 level.
Major Support Levels – $30,000, followed by $29,550.
Major resistance levels – $30,400, $30,550 and $31,400.
