Bitcoin bottoming support approached $29,350 and recovered higher against the US Dollar. BTC must break above the $31,000 resistance and the 100-hour SMA to continue higher.
- Bitcoin started a recovery wave from the $29,350 zone.
- The price is now trading below the $31,000 level and the 100 hourly simple moving average.
- There is a major downtrend line forming with resistance near $31,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could resume its decline if there is no clear move above the $31,000 resistance.
Bitcoin Price Recovers $30K
Bitcoin price extended its decline below the $30,000 support zone. However, the downside was capped below the $29,500 level. The price formed a base near $29,350 and started a rallying wave.
There was a move above the $30,000 resistance zone. The price rose above the 23.6% Fib retracement level of the recent drop from the $32,400 high to $29,328 low. It even broke out above the $30,500 resistance zone, but the bears were active near the $31,000 level.
Bitcoin price is now trading below the $31,000 level and the 100 hourly simple moving average. There is also a major downtrend line forming with resistance near $31,000 on the hourly chart of the BTC/USD pair.
The trend line is near the 50% Fib retracement level of the recent drop from the $32,400 high to $29,328 low. An immediate resistance on the upside is near the $30,800 level. The next major resistance is near $31,000 and the 100 hourly simple moving average.
Source: BTCUSD on TradingView.com
A clear move above the $31,000 resistance level could start another rally. In the indicated case, the price could rally towards the $32,000 resistance. The next major resistance lies near the $32,400 level.
New drop in BTC?
If bitcoin fails to clear the $31,000 resistance zone, another drop could start. An immediate support on the downside is near the $30,000 level.
The next big support is near the $29,350 level. A downside break below the $29,350 support could perhaps trigger a sharp drop. In the indicated case, the price could revisit the support zone of $28,250.
Hourly MACD – The MACD is now losing pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well above the 50 level.
Major Support Levels: $30,000, followed by $29,350.
Major resistance levels: $30,800, $31,000 and $32,000.