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TA: Bitcoin Breaks $30K, Why This Could Turn Into Larger Downtrend

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Cryptocoins News / NewsBTC 143 Views

Bitcoin failed to recover above $32,000 against the US Dollar. BTC is gaining bearish momentum and trading below the key $30,000 support zone.

  • Bitcoin started a fresh decline and traded below the key $30,000 support zone.
  • The price is now trading below $30,000 and the 100 hourly simple moving average.
  • There is a key bearish trend line forming with resistance near $31,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair might accelerate lower below the $27,500 and $27,000 levels in the near term.

Bitcoin Price Dives Below Key Support

Bitcoin price attempted a recovery wave above the $32,000 level. However, BTC struggled to continue higher and started a fresh decline below $31,000.

There was a clear move below the key $30,000 support zone and the price settled below the 100 hourly simple moving average. The decline gained pace below the $29,500 level. Finally, there was a move below the $28,000 level and the price traded to a new multi-week low at $27,700.

Recently, there was a minor upside correction above $29,000. Bitcoin recovered above the 23.6% Fib retracement level of the recent decline from the $32,132 swing high to $27,700 low.

However, the bears were active near the $30,000 resistance zone. The price remained below the 50% Fib retracement level of the recent decline from the $32,132 swing high to $27,700 low. There is also a key bearish trend line forming with resistance near $31,000 on the hourly chart of the BTC/USD pair.

Bitcoin Price

Source: BTCUSD on TradingView.com

The next key resistance could be near the $31,500 level. The key breakout zone is still near the $32,000 zone, above which the price might start a steady recovery wave in the near term.

More Losses in BTC?

If bitcoin fails to clear the $30,000 resistance zone, it could continue to move down. An immediate support on the downside is near the $28,200 level.

The next major support is seen near the $27,700 level. A downside break and close below the $27,700 support might accelerate losses. The next major support could be $27,200, below which the bears might aim a move towards the $26,500 support zone.

Technical indicators:

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

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

Major Support Levels – $28,200, followed by $27,700.

Major Resistance Levels – $29,500, $30,000 and $31,400.

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