Bitcoin Stuck In Key Range, Why A Major Breakout Is Possible

Bitcoin holds the $29,500 key support level against the US dollar. BTC has to break the $31,500 resistance level in order for a rapid increase.

  • Bitcoin shows some signs of life above and beyond the $29,500 support area.
  • The current price of the stock is trading at below the $30,000.500 and 100-hourly simple moving average.
  • A major contracting triangle is emerging with resistance close to $31,250 in the hourly BTC/USD chart (data feed Kraken).
  • A clear break above $31,500 could signal a sharp increase in the pair.

Bitcoin price remains in a range

The Bitcoin price tried to increase again above the levels of $31,200 resistance and $31,500 support. But, bears were very active around the $31,500 level. An area of highs was reached near $31,550, and price corrections were made.

The price moved below the $30,500 and $31,000 support levels. The price has been consolidating within a range since forming a low at $29,848. A recovery occurred above the $30,000 resistance area. Price spiked to above 23.6% Fib level for the decline from $31,550 high, $29,848 lower.

The price remained at or near $30,700. Bitcoin trading now below the $30,000.5 level and the simple 100 hour moving average.

The immediate resistance to the upside lies near the $30,000. level and 100-hourly simple moving average. At the $30,000.850 level is the initial major resistance. Near the $31,250 mark is the main resistance. A major contracting triangle is also visible with resistance close to $31,250 in the hourly charts of the BTC/USD pairs.

Bitcoin Price

Source: BTCUSD from TradingView.com

Price could move higher if the resistance of $31,250 is breached. Next major resistance could be at $32,000. A trend change is possible and the price could rise to the $33,200 mark.

BTC Downside Break

It could fall further if bitcoin does not clear the $31,250 barrier. The $30,000 mark is an immediate support level for the downside.

Near the $29850 level is the next significant support. Main support remains at the $29,000. A decline could be triggered by a break below $29,500. If this is the case, then the price might fall towards the $28,500 level in the immediate future.

Technical indicators

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

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

Major Support Levels – $30,000, followed by $29,500.

Major Resistance Levels – $30,400, $30,850 and $31,250.

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