Bitcoin Nosedives To $28.5K, Why Important Support Turned Resistance

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Bitcoin price has fallen over 15% and has broken many supports near $ 32,000 against the US dollar. BTC even traded near $ 28.5,000 and is currently correcting losses.

  • Bitcoin saw a sharp drop below the USD 33,000 and USD 32,000 support levels.
  • The price is currently correcting losses but is now well below $ 32,000 and 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 32,700.
  • The pair is likely to have strong selling interest near the $ 32,000 and $ 32,800 levels.

Bitcoin price turns red

Yesterday we discussed the chances of further losses in Bitcoin price below $ 33,000. BTC failed to rebound above $ 34,500 and began a sharp decline. There was a pause among many major supports near $ 33,000 and $ 32,800.

It opened the doors to other drawbacks below $ 32,000 and the price was well below the 100-hour simple moving average. The price even fell below the $ 30,000 level. It traded near the USD 28,500 support and is currently correcting losses.

There was a pause above the $ 30,000 level. Bitcoin price is now trading above the 23.6% Fib retracement level of the recent decline from the high of $ 32,707 to the low of $ 28,808.

Source: BTCUSD on TradingView.com

On the upside, initial resistance is near the $ 30,800 and $ 31,000 levels. The 50% Fib retracement level of the recent decline from the high of $ 32,707 to the low of $ 28,808 is also near the $ 30,800 level. The next major resistance is near the $ 32,000 level.

A key bearish trendline is also forming on the hourly chart of the BTC / USD pair with resistance near $ 32,700. To enter a positive zone, the price needs to clear USD 32,800 and USD 33,000 (support turned resistance).

Other disadvantages with BTC?

Unless Bitcoin recovers above $ 31,000 and $ 31,800, there is a risk of further decline. Initial downside support is near the $ 30,000 level.

The first major support is near the $ 28,800 and $ 28,500 levels. A close below the $ 28,000 support zone could open the doors for a decline towards the $ 25,000 support zone in the upcoming sessions.

Technical indicators:

Hourly MACD – The MACD is slowly gaining momentum in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC / USD is now bouncing towards 40.

Major Support Levels – $ 30,000 followed by $ 28,800.

Main Resistance Levels – $ 30,800, $ 31,000, and $ 32,800.