Bitcoin Trims Gains, Why BTC Could Start Fresh Decline

Date:

Bitcoin traded at $29,000 below the US Dollar, extending its decline. BTC should not fall below $28,500 in order to prevent a rapid decline.

  • Bitcoin began a new decline after the resistance level of $30,500.
  • Today, the price trades below the $30,000 mark and the 100 hourly simple moving mean.
  • The hourly BTC/USD chart showed a breaking below the connecting bullish trendline with support at $29,600 (data feed Kraken).
  • A clear break below the $28,500 support area could cause further decline.

Bitcoin price is showing bearish signs

Bitcoin’s price did not clear $30,500 resistance and began a new increase. The Bitcoin price moved clearly below the $29,000 and $29,500 support levels.

A break was also observed below the connecting bullish trendline with support at $29,600, on the hourly charts of BTC/USD. Now, the pair trades below $30,000 as well as the simple moving average of 100 hours. It reached the $28,500 resistance zone.

An immediate low has formed at $28,589; the market is consolidating losses. A resistance level is located near $29,000. This is close to the 23.6% Fib level of the decline from $30,742 high to $28,589 low.

Bitcoin Price

Source: BTCUSD from TradingView.com

Near the $29650 level is the next significant resistance. The 50 Fib Retracement Level of the recent fall from the $30.742 swing high and $28,589 lower is located near it. An obvious move above $29,500 or $29,650 resistance could signal a further increase. Next, the key resistance level could be at the $30,000. Above which, the price may rise to $31,200.

BTC: More losses

Bitcoin could fall further if it fails to climb above $29,650. Support for the downside lies near $28,800.

Next major support will be at the $28,500 mark. The potential for a big decline could be triggered by a downside breakout and a close to the $28,500 level. The price may drop to $27,500 in the above scenario.

Indicators technical

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

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

Major Support Levels – $28,800, followed by $28,500.

Major Resistance Levels – $29,650, $30,000 and $30,500.

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