Bitcoin Recovers $30K, Why Bulls Face Uphill Task

Bitcoin started a fresh rise from the $28,500 support zone against the US Dollar. BTC must release $30,600 to move further into a positive zone.

• Bitcoin formed a base above $28,500 and started a new rise.
• The price is now trading above the $30,000 level and the 100 hourly simple moving average.
• There is a major downtrend line forming with resistance near $30,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could gain some upside momentum if there is a clear move above $30,600.

Bitcoin price faces resistance

Bitcoin price found support near the $28,500 zone after a steady decline. A base was formed near $28,600 and a new rise began.

There was a clear move above the $29,500 resistance zone and the 100 hourly simple moving average. The bulls even pushed the price above the $30,000 resistance zone. However, they now face an uphill task near the $30,600 zone.

There is also a major downtrend line forming with resistance near $30,400 on the hourly chart of the BTC/USD pair. A high is formed near $30,721 and the price is now consolidating gains.

The price is trading above the 23.6% Fib retracement level of the upward move from the $28,590 low to $30,721 high. An immediate resistance is near the $30,400 level. The next major resistance is near the $30,600 level.

Source: BTCUSD on TradingView.com

A clear move above the $30,400 and $30,600 resistance levels could start a new rally in the near term. The next key resistance could be near the $31,500 level, above which the price could gain momentum to the upside.

New drop in BTC?

If bitcoin fails to gain pace above the $30,600 resistance zone, a new decline could begin. An immediate support on the downside is near the $30,000 level. The first major support is near the $29,800 level and the 100 hourly SMA.

The next major support lies near the $29.655 level. It is near the 50% Fib retracement level of the upward move from the $28,590 low to $30,721 high. A break to the downside and a close below the $29,650 support could start another drop. In the indicated case, the price could drop towards the $28,500 level.

Technical indicators:

Hourly MACD – The MACD is now slowly losing pace in the bullish zone.

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

Major support levels: $29,800, followed by $29,650.

Major resistance levels: $30,600, $31,200 and $31,500.