Bitcoin price dropped below $30,000 before starting a major recovery against the US Dollar. BTC is back above $32,000, but it needs to clear the 100-hour simple moving average for more gains.
- Bitcoin extended its decline below the $30,000 support area before starting an upward correction.
- The price is now trading near the $34,000 area and the 100 hourly simple moving average.
- There is a major bearish trend line forming with resistance near $35,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The 100-hourly simple moving average pair must cross $35,000 to move into a bullish zone in the near term.
Bitcoin price starts to recover
Bitcoin struggled to stay above $32,000 support It continued its decline. BTC broke the key support levels of $30,500 and $30K to move further towards a bearish zone.
The price rose to below $29,000 and settled well below Simple moving average per 100 hours. It traded as low as $28,822 and recently started an upward correction. Bitcoin picked up its pace and managed to reclaim the $30,000 mark.
There was also a break above the 50% Fib retracement level of the recent decline from the swing high $36,171 to $28,822. It is now trading near the $34,000 area and the 100 hourly simple moving average.
There is an initial resistance on the upside near the $34,500 level. It is near the 76.4% Fib retracement level of the recent decline from the $36,171 high to $28,822. The main resistance is still near the $35,000 area. There is also a major bearish trend line forming with resistance near $35,000 on the hourly chart of the BTC/USD pair.
Source: BTCUSD on TradingView.com
Bitcoin must cross the 100 hour simple moving average and then pick up the pace to break above the $35,000 barrier to move into positive territory.
A new drop in bitcoin?
If Bitcoin fails to break above the $34,500 resistance or trend line resistance, it may start a new decline. There is immediate support on the downside near the $33,000 level.
The next major support is near the $32,500 level. A break-down below $32,500 may open the doors to a new decline towards the $30K area in the upcoming sessions.
Hourly MACD – The MACD is now moving in the bullish zone.
Hourly RSI (Relative Strength Index) – RSI for BTC/USD is back above the 50 level.
Key support levels – $33,000, followed by $32,500.
The main resistance levels are $34,500, $35,000, and $36,500.