Bitcoin price has widened its decline against the US dollar below $ 31,000 and $ 30,000. BTC is correcting higher and it appears the bulls are aiming for a break above USD 32,000.
- Bitcoin fell below the $ 32,000 support level and revisited the $ 29,250 zone.
- The price is currently rebounding above $ 30,000 but is well below the 100-hour simple moving average.
- A key bearish trendline is forming on the hourly chart of the BTC / USD pair (data feed from Kraken) with resistance near USD 31,350.
- The pair could correct towards $ 32,000 or $ 32,800 if it clears trendline resistance.
Bitcoin price is trying to recover strongly
As discussed yesterday, Bitcoin price has extended its decline and traded below the support of $ 32,000. BTC even broke the $ 31,000 level and was below the 100 hour simple moving average.
There was a significant break below the $ 30,000 support zone and the price tested was $ 28,250. A low is being formed near $ 29,271 and the price is currently correcting higher. It surpassed the $ 30,000 and $ 30,200 resistance levels.
There was a break above the 23.6% fib retracement level of the bearish wave from the high of $ 34,915 to the low of $ 29,271. However, the price is now facing resistance near $ 31,200 and $ 31,300. A key bearish trendline is also forming on the hourly chart of the BTC / USD pair with resistance near USD 31,350.
Source: BTCUSD on TradingView.com
If there is a significant break above the trendline resistance, Bitcoin price could rebound towards the USD 32,000 resistance. The 50% Fib retracement level of the downward wave from the high of $ 34,915 to the low of $ 29,271 is also close to the $ 32,000 level along with the 100 hour SMA.
A successful break above the USD 32,000 resistance and the 100 hour SMA could open the doors for a sharp rise. The next major resistance is near the $ 32,800 and $ 33,000 levels.
Fresh dip in BTC?
If Bitcoin fails to offset the $ 31,300 or $ 32,000 resistance, it could cause another drop. Initial support is near channel support at $ 30,000.
The main support is now forming near the $ 29,250 zone. A sharp break below the USD 29,250 support zone could open the doors for a larger decline towards USD 28,000.
Technical indicators:
Hourly MACD – The MACD is slowly 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 – $ 30,400, followed by $ 30,000.
Main Resistance Levels – $ 31,300, $ 32,000, and $ 32,800.
