Bitcoin tops $30k, why this could turn into a bigger downtrend

Bitcoin/USD failed to recover above $32,000. BTC is gaining bearish momentum and is trading below the key $30,000 support area.

  • Bitcoin started a fresh decline and traded below the key $30,000 support area.
  • The price is now below $30,000 and the 100 hourly simple moving average.
  • A key bearish trend line has formed with resistance near $31,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could accelerate below the $27,500 and $27,000 levels in the near term.

Bitcoin price falls below key support

bitcoin price try to restore the tide Above the $32,000 level. However, BTC struggled to continue higher and started falling below $31,000.

There was a clear move below the key $30,000 support area and the price settled below $30,000 100 hourly simple moving average. Falls accelerated below $29,500. Finally, below $28,000, the price fell to a new multi-week low of $27,700.

More recently, there has been a minor upside correction above $29,000. Bitcoin retreated from a high of $32,132 to a low of $27,700, recovering above the 23.6% Fib retracement level of the recent decline.

However, the bears are active near the $30,000 resistance zone. Prices remain below the 50% Fib retracement level of the recent decline from the $32,132 swing high to $27,700 low. There is also a key bearish trend line forming with resistance near $31,000 on the hourly chart of the BTC/USD pair.

Source: BTCUSD on TradingView.com

The next key resistance is likely near $31,500. The key breakout area remains near the $32,000 area, above which prices could start a steady wave of recovery in the near term.

BTC to lose more?

If Bitcoin fails to break the $30,000 resistance zone, it could continue to decline. Immediate support on the downside is near $28,200.

The next major support is near $27,700. A downside break and close below the $27,700 support could accelerate losses. The next major support level is likely to be at $27,200, with the bears likely to target the $26,500 support area.

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 below the 50 level.

Major support levels – $28,200, followed by $27,700.

Major resistance levels – $29,500, $30,000 and $31,400.

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