Bitcoin Gains Momentum, Why Breaking $30k Is Crucial

Bitcoin fell to the $25,000 support area against the US Dollar. BTC is now recovering and could move above the key resistance at $30,000.

  • Bitcoin found support above $25,000 and started an upside correction.
  • The price remains below $30,000 and the 100 hourly simple moving average.
  • A major bearish trend line has formed with resistance near $30,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair must break the $30,000 mark to move into positive territory and start a real recovery.

Bitcoin price starts to recover

Bitcoin price remains at Bearish zone below the $30,000 support area. BTC extends losses and falls below $28,000.

The price surged below $26,000 and the price traded to a fresh multi-month low of $25,332. A base formed above $25,000 and the price started a fresh advance. There is a clear move above the $26,500 and $27,500 resistance levels.

The price climbed to the 50% Fib retracement level of the recent decline from the $32,130 high to $25,332 low. However, it is still trading below $30,000, 100 hourly simple moving average.

There is also a major bearish trend line forming with resistance near $30,000 on the hourly chart of the BTC/USD pair. The next major resistance is near the $30,500 area and the 100 hourly simple moving average. It is near the 76.4% Fib retracement level of the recent decline from the $32,130 swing high to $25,332 low.

Source: BTCUSD on TradingView.com

A clear break above the $30,000 and $30,500 resistance levels could start fresh gains in the coming sessions. The next key resistance is likely near $31,500, above which the price could rise above $32,000.

New drop for BTC?

If Bitcoin fails to break the $30,000 resistance zone, it could start a fresh decline. Immediate support on the downside is near $28,800.

The next major support is near $27,650. A downside break and close below the $27,650 support could accelerate losses. The next major support is likely to be at $26,200, with the bears likely to target support at $25,500.

Technical indicators:

Hourly MACD – The MACD is now picking up pace in the bullish zone.

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

Major support levels – $28,200, followed by $27,650.

Major resistance levels – $30,000, $30,500 and $31,500.

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