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The foremost cryptocurrency is experiencing considerable downward pressure as it falls beneath the vital $30,500 support level. The bears are currently in control, with the price trading under $30,300 and the 100-hourly Simple Moving Average.
On the hourly chart for the BTC/USD pair, derived from Kraken’s data feed, a significant bullish trend line with support around $30,500 has been breached, suggesting a possible further decline. Traders are attentively observing the $28,400 support level, which may be the next target for the cryptocurrency.
Despite a momentary increase in price, Bitcoin found it challenging to surpass the $31,000 resistance area. The limited upward movement resulted in a downward reaction, causing the price to drop below the $31,000 mark. It also fell below the $30,650 and $30,500 levels, including the key bullish trend line near $30,500.
Bitcoin encountered temporary support around $29,868 and is presently consolidating its losses. Nevertheless, the price remains under $30,300 and the 100-hourly Simple Moving Average, indicating ongoing bearish sentiment.
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The immediate resistance is situated near the $30,280 level, which corresponds with the 23.6% Fibonacci retracement level of the recent decline from the $31,631 swing high to the $29,868 low. A significant recovery wave may materialize if the price exceeds the $30,500 level.
Additional resistance is anticipated near $30,750 and the 100-hourly Simple Moving Average, close to the 50% Fibonacci retracement level. A breakthrough above these levels could result in a retest of $31,000, potentially setting the stage for further gains. The ultimate hurdle lies near the $31,400 level, with a successful breach indicating a possible move toward the $32,000 resistance zone.
However, downward momentum may continue if Bitcoin does not manage to surpass the $30,500 resistance. Immediate support is available near the $29,850 level, followed by the recent low at $29,000. A more significant decline could bring the price closer to the $28,400 level, and additional losses might lead to a test of the $28,000 level.
Technical indicators reinforce the bearish outlook, with the hourly MACD displaying increasing momentum in the bearish zone. The Relative Strength Index (RSI) for BTC/USD is currently below the 50 level, further indicating a shift in favor of the bears.
In conclusion, Bitcoin is at a crucial point as it struggles to maintain support above $30,500. While recovery is feasible if resistance levels are breached, the current technical analysis suggests a cautious stance as downward pressure persists. Traders and investors should closely observe support and resistance levels for potential market movements.
The post Bitcoin Price Takes Hit – What Could Spark Larger Degree Correction appeared first on BitcoinWorld.
