Bitcoin saw a new increase, surpassing $31,000 against US dollars. BTC may correct losses, but declines could still be well supported at $30,800.
- Bitcoin has been growing faster than the $30,000.500 and $31.000 resistance levels.
- The price has traded at or above the $31,000 mark and the simple moving average of 100 hours.
- On the hourly chart for the BTC/USD pair, there is an apparent bullish trend line connecting with support close to $31,250 (datafeed from Kraken).
- It is possible for the pair to rally further once it clears $32,200.
Bitcoin Price Rallies 5%
Bitcoin prices remained at or near the $30,000 pivot point. The Bitcoin price formed a solid base, and then started an upward move above the $30,000.500 resistance level.
It rose above the $31,200 resistance level and closed well above the 100-hourly simple moving average. The price traded at $32,186, spiking above the $32,000 mark. Now, it is correcting losses below $32,000
Below the 23.6% Fib Retracement Level of the upward move between the $30,234 swing high and $32,186 low was seen, there was also a decline. The hourly BTC/USD chart shows a connected bullish trendline with support close to $31,250.
Source: BTCUSD from TradingView.com
Near the $32,200 area, there is immediate resistance to the upside. Next is the $32,200 resistance level. Another increase could be possible if the price moves above $32,200. If the previous scenario is true, then the price might even break the $32,500 resistance. Next is $33,400, which will be the major resistance.
BTC Dips Limited
A downside correction could occur if bitcoin does not clear the $32,200 resistance area. Near the $31,500 support level, there is immediate support. It is close to the trend line, at $31,250. This level provides the initial support. The Fib retracement level at 50% of the upward swing from $30,234 to $32,186 is very close.
Support is currently forming at the $30,800 mark. Bulls may feel some pressure should they fail to break the $30,800 resistance. If the above scenario is true, then the price might re-enter the $30,000 support zone.
Technical indicators
Hourly MACD – The MACD is now losing pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well above the 60 level.
Major Support Levels – $31,250, followed by $30,800.
Major Resistance Levels – $32,200, $32,200 and $33,400.
