Why Bitcoin is still at risk of a fresh break below $29,000

Bitcoin is trying to bounce back above the $30,000 resistance against the US Dollar. BTC struggles near $31,000 and could start a fresh decline.

  • Bitcoin recovers above $30,000 but struggles above $31,000.
  • The price is now well above the $30,000 level and the 100 hourly simple moving average.
  • A key bullish trend line has formed with support near $30,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could start a fresh decline if the $30,000 support area is cleared

Bitcoin price faces obstacles

Bitcoin price from $25,000 support zone. BTC is rising above the $28,000 level and the 100 hourly simple moving average.

it even clears $30,000 resistance zone. However, the bulls are struggling to hold above the $31,000 level. A high was formed near $31,390 and the price is now slowing lower. It fell below the $31,000 level.

Bitcoin fell below the 23.6% Fib retracement level from the $28,600 swing low to $31,390 high. The price is now nearing the $30,400 support.

There is also a key bullish trend line forming with support near $30,400 on the hourly chart of the BTC/USD pair. The next major support is near $30,000. It is near the 50% Fib retracement level of the swing low of $28,600 to the high of $31,390.

Source: BTCUSD on TradingView.com

A downside break and close below the $30,000 support could start a sharp decline. In the aforementioned scenario, the price could drop towards the $29,000 level. The next major support is near $28,000, below which a new bearish wave could begin.

More advantages of BTC?

If Bitcoin stays above the $30,000 support area, it could start a fresh rise. Immediate resistance on the upside is near $31,000.

The next major resistance is near $31,400. A clear break above the $31,000 and $31,400 resistance levels could start fresh gains in the coming sessions. The next key resistance is likely near $32,500, above which the price could rise above $33,000.

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 not close to the 50 level.

Major support levels – $30,400, then $30,000.

Major resistance levels – $31,000, $31,400 and $32,500.

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