Bitcoin price recently underwent a correction and retested the support level at $30,650. However, as long as the cryptocurrency remains above the $30,000 support zone, there is a possibility of a fresh increase in its value.
Currently, Bitcoin is holding onto its gains above the $30,650 support zone. The price is also trading above $30,700 and the 100 hourly Simple Moving Average (SMA). This indicates that there is still bullish momentum in the market.
On the hourly chart of the BTC/USD pair, a key bullish trend line is forming with support near $30,700. This further reinforces the potential for a fresh increase in Bitcoin’s price. If the cryptocurrency manages to stay above the $30,650 support zone, it could pave the way for further upward movement.
Bitcoin’s price had previously struggled to clear the significant resistance zone at $31,400. As a result, it started a downside correction, falling below the $31,000 and $30,800 levels. This decline also breached the 50% Fibonacci retracement level of the upward move from the $30,192 swing low to the $31,372 high.
Related Post
Despite this correction, the bulls quickly entered the market near the $30,650 support zone and the 100 hourly SMA. Bitcoin also tested the 61.8% Fibonacci retracement level of the same upward move from the swing low to the high. Currently, the cryptocurrency is trading above $30,700 and the 100 hourly SMA, which indicates a strong support level.
In terms of resistance, the immediate level to watch is near $31,050. If Bitcoin manages to break this resistance, the next major obstacle lies at $31,250, followed by a potential rise towards $31,400.
Looking at the bigger picture, a close above the $31,400 resistance level could trigger another strong increase in Bitcoin price. This could eventually lead to a significant resistance at $32,000 and potentially open the doors for a move towards the $32,500 resistance zone.
However, if Bitcoin fails to clear the $31,050 resistance, it might witness further downward movement. In such a scenario, the immediate support sits near the $30,650 level, along with the bullish trend line and the 100 hourly SMA. If this support level is breached, the next major support lies at $30,470. A drop below this level could lead to a decline towards $30,200, and there is even a risk of a larger decline towards the $30,000 zone.
Taking a look at the technical indicators, the hourly MACD is currently losing pace in the bullish zone, indicating a potential slowdown in the upward momentum. Additionally, the hourly RSI (Relative Strength Index) for BTC/USD is below the 50 level, suggesting a bearish sentiment.
In conclusion, Bitcoin price has held onto its gains above the $30,650 support zone and is trading above the 100 hourly SMA. The presence of a key bullish trend line further reinforces the possibility of a fresh increase in Bitcoin’s value. If the cryptocurrency manages to maintain its position above the support zone, it could encounter resistance at $31,050, followed by $31,250 and potentially rally towards $31,400. However, failure to clear the resistance could result in further losses, with immediate support at $30,650 and the possibility of a decline towards $30,000.
