Bitcoin was still above $31,200 in relation to the US Dollar. BTC may correct lower but bulls could remain active at $30,800.
- Bitcoin shows positive signs beyond the $30,500- and $31,000 resistance levels.
- The price has traded at or above $31,200 and the 100-hourly simple moving average.
- On the hourly chart for the BTC/USD pair, there is support close to $31,800. This trend line forms a bullish signal (data feed Kraken).
- This pair may correct and check the $30,800 or $31,000 levels of support.
Bitcoin Price Faces Key Resistance
Bitcoin prices increased beyond the $31,000 mark. The Bitcoin price even broke through the $32,000 barrier on two occasions. However, the bears secured more gains over $32,200.
Near $32,400 was the swing high before the market began to decline. The price moved below $32,000. This corrected the price and test the 23.6% Fib level of the upward swing from the $29,000.85 swing low to $32,400 highest.
It has now crossed the $31,800 mark. On the hourly chart for the BTC/USD pair, there is a bullish trend line that forms with support at $31,800. Bitcoin has also risen to levels well above $31,200 and the simple 100-hour moving average.
Source: BTCUSD from TradingView.com
Near the $32,000 level, there is immediate resistance. Near the $32,200 or $32,400 levels is next resistance. An increase in the price could occur if it moves above $32,400. If the previous scenario is true, then the price might rise towards $32,500. Next is $33,400.
BTC Dips
A downside correction could occur if bitcoin does not clear the $32,400 resistance area. Support for the downside lies near the trend line, which is at $31,800. If the trend line is broken, a downside breakout could push the price to the $30,000.
Near the $30,800 mark is the 50% Fib level that reflects the upward movement from $29,085 low to $32,400 high. If there are more gains, it could lead to a push towards $30,000 support.
Indicators technical
Hourly MACD – The MACD is now losing pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is moving lower towards the 50 level.
Major Support Levels – $31,800, followed by $30,800.
Major Resistance Levels – $32,000, $32,200 and $32,400.