Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
Bitcoin (BTC) is currently experiencing a price correction, trading below the $29,800 threshold. Nevertheless, the cryptocurrency continues to hold above the $29,400 support level and the 100-hourly Simple Moving Average (SMA). Let’s examine the technical analysis of BTC’s recent price movements:
The BTC/USD hourly chart from Kraken’s data feed indicates several notable developments:
Bitcoin experienced a notable upward trend, breaking through resistance levels at $29,400 and $29,500. It even surpassed the $30,000 mark, although it did not manage to close daily above this level.
The peak reached approximately $30,190, after which the price began a downward adjustment.
Key support was compromised as the price dipped below $30,000 and $29,800. Additionally, a significant bullish trend line support around $29,840 was breached.
At present, Bitcoin’s price is above $29,400 and is supported by the 100-hourly SMA. This level is also important as it serves as a pivot zone.
Bitcoin’s immediate resistance is situated near the $29,680 mark. The first major resistance level is at $29,800, followed by $30,000. If the price successfully breaks through this level, it may retest $30,200.
Related Posts
A close above the $30,200 resistance could initiate a new phase of steady growth, potentially pushing the price towards $31,200 or even $32,000 in the upcoming days.
On the other hand, failing to surpass the $29,800 resistance may result in a renewed decline. The first support line is at $29,400, followed by a more critical support level around $29,300 or the 100-hourly SMA.
A drop below $29,300 could indicate the beginning of bearish movements, possibly revisiting the $29,000 level. Further losses might even drive the price down to the $28,680 level in the near term.
The technical indicators provide additional insights:
The hourly MACD (Moving Average Convergence Divergence) reflects an increase in the bearish zone.
The Relative Strength Index (RSI) for BTC/USD has dipped below 50, suggesting a decline in bullish momentum.
Bitcoin’s recent correction is a key focus for both traders and investors. While there is potential for a return to an upward trend, market sentiment will be shaped by the price’s capacity to overcome critical resistance levels and sustain support at essential points.
The post Bitcoin Price Correction: Analyzing Key Support and Resistance Levels appeared first on BitcoinWorld.
