Bitcoin

Bitcoin Bears Are Back, Here’s Why BTC Could Test $30K


Bitcoin price failed to break above the $37,000 resistance against the US Dollar. BTC is declining and still at risk of further losses, below $34,000.

  • Bitcoin faces a lot of hurdles near the $36,000 and $37,000 resistance levels.
  • The price is currently trading well below $37,000 and the 100 hourly simple moving average.
  • There is a major bearish trend line forming with resistance near $36000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could drop sharply if it stabilizes below the $34,000 and $33,200 support levels.

Bitcoin price turns red

Bitcoin made a few attempts to clear the $37,000 resistance area, but failed. The last swing low formed near $33,650 before BTC corrected higher.

It broke the $34,000 and $35,000 resistance levels. There was also a break above the 23.6% Fib retracement level of the downside move from $40,417 to the low at $33,650. The price is now struggling to surpass the $36000 resistance level.

Bitcoin is also trading at less than $37,000 and Simple moving average per 100 hours. Moreover, there is a major bearish trend line forming with resistance near $36,000 on the hourly chart of the BTC/USD pair.

Source: BTCUSD on TradingView.com

On the upside, there is an immediate resistance near the $35,500 level. The first major resistance is near the $36,000 level and the trendline. The next major resistance is near the $37,000 level. It is close to the 50% Fib retracement level of the downside move from $40,417 to the $33,650 low.

A close above the $37,000 resistance area could open the door to a steady increase. The next major barrier for the bulls is approaching the $40,000 level.

More losses in bitcoin?

If Bitcoin fails to surpass the $36,000 resistance, there is a risk of a break the negative side. There is initial support on the downside near the $34,500 level.

The first major support is near the $34,000 level. If there is a downside break below the $34,000 support level, the price may drop towards the $32,000 support area in the upcoming sessions. Any further losses could pave the way for a test of the $30,000 level.

Technical indicators:

Hourly MACD – The MACD is slowly gaining pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

Key support levels – $34,000, followed by $32,000.

The main resistance levels are $35,500, $36,000, and $37,000.



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