Bitcoin Dives To $30K, Why Short-term Recovery Seems Possible

Bitcoin suffered further losses, and the price of Bitcoin even soared to $30,000 below its US dollar counterpart. BTC may now be consolidating, and maybe even higher to the $32,000 resistance.

  • Bitcoin experienced a steep decline from the $33,500 to $32,000 levels.
  • The current price trades below $32,000, and the simple moving average is 100 hours.
  • On the hourly chart for the BTC/USD pair, there are two significant bearish trend lines that form with resistance at $32,000 (datafeed from Kraken).
  • Although the pair may correct lower, bears could remain active at $32,000.

Bitcoin Price Declines 10%

Bitcoin prices remained below $35,000 and continued to fall. BTC moved further into bearish territory when it traded below $33,500 support and $32,000 resistance levels.

Closed below $32,000, and the 100-hourly simple moving average was at its lowest. It traded as low as $30,800. Then it spiked to below $30,000. Near $29,755 is the new low and it is consolidating losses.

The upside is that bitcoin prices are facing resistance around the $31,250 area. This is close to the 23.6% Fib level of the decline from the $36,060 swing high, $29,755 low.

Next, the key resistance may be at or near $32,000. On the hourly chart for the BTC/USD pair, there are two key bearish trendlines. They form resistance at $32,000. It is possible that the key breakout zone will be in close proximity to $33,000.

Bitcoin Price

Source: BTCUSD from TradingView.com

Also, the 50% Fib Retracement Level of the recent fall from the $36,060 swing low to the $29.755 high is close to the $33,000 area. A price above $33,000 is necessary to begin a reasonable recovery wave. If this is the case, it could increase to $35,000

BTC Losses:

Bitcoin could move lower if it fails to break the $32,000 resistance level. A $30,200 level provides immediate support for the downside.

Near the $30,000 support, we see the next significant support. More downsides could be possible if the support level is breached below $30,000. It is possible that $29,000.500 will be the next support. A further loss could send the price toward the $28,800 support area.

Indicators technical

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 40 level.

Major Support Levels – $30,200, followed by $30,000.

Major Resistance Levels – $31,200, $32,000 and $33,000.

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