Bitcoin Liquidates $30K, Why This Could Mean a Trend Change

Bitcoin started a fresh rally and traded above $30,000 against the US dollar. BTC is showing positive signs and could rally further if it clears $30,600.

  • Bitcoin is accelerating above the $29,500 and $30,000 resistance levels.
  • The price is now above $29,500 and the 100 hourly simple moving average.
  • There was a break above a major bearish trend line with resistance near $29,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair is likely to rise further if it breaks the $30,600 resistance zone.

Bitcoin price rises

Bitcoin price at The key $28,500 support zone. It remains highly bid and has started a fresh uptick above the $29,200 resistance.

The price cleared the 50% Fib retracement level of the retracement from the $30,188 high to $27,505 low. Furthermore, there was a break above a major bearish trend line with resistance near $29,200 on the hourly chart of the BTC/USD pair.

The pair is currently trading above $29,500, while 100 hourly simple moving average. Bitcoin is also trading above the 76.4% Fib retracement level from the $30,188 swing high to $27,505 low.

Source: BTCUSD on TradingView.com

Immediate resistance on the upside is near $30,250. The next major resistance is near $30,600. A clear break above the $30,600 resistance may require a trend change. In the aforementioned scenario, the price could even clear the $31,200 resistance. The next major resistance is near $32,500.

New drop for BTC?

If Bitcoin fails to break the $30,600 resistance zone, it could start a downside correction. Immediate support on the downside is near $30,000.

The first major support is near $29,600. Major support is now forming near $29,300 and the 100 hourly simple moving average. A break below the $29,200 support could send the price lower. In the aforementioned case, the price could revisit the $28,500 support area in the near term.

Technical indicators:

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

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well above the 60 level.

Major support levels – $29,500, then $28,500.

Major resistance levels – $30,250, $30,600 and $32,500.

Source link