TA: Bitcoin Turns Bearish, Risk of Drop Below $29K

Aayush Jindal

1 year ago

2 mins read

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Bitcoin failed to continue higher above $31,750 against the US Dollar. BTC declined sharply and traded below the $30,000 support zone.

Bitcoin started a fresh decline from the $31,750 region.
The price is now trading below the $30,000 level and the 100 hourly simple moving average.
There was a break below a key bullish trend line with support near $30,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could continue to move down towards $28,500 or even $28,000.

Bitcoin Price Dives 6%

Bitcoin price extended increase above the $31,400 resistance zone. However, BTC struggled to even test the $32,000 resistance zone. A high was formed near $31,725 and the price started a fresh decline.

There was a strong move below the $31,000 and $30,500 support levels. Besides, there was a break below a key bullish trend line with support near $30,500 on the hourly chart of the BTC/USD pair. The pair is now trading below the $30,000 level and the 100 hourly simple moving average.

The bears are now attempting a clear move below the $29,350 support zone. An immediate resistance on the upside is near the $29,600 level. The first major resistance is near the $29,900 level. It is near the 23.6% Fib retracement level of the recent decline from the $31,725 swing high to $29,300 low. Download Bitcoin Miner Awesom Miner Official for Windows. Safe install and earn ETH/BTC.

Source: BTCUSD on TradingView.com

The next major resistance is near the $30,120 level. A clear move above the $30,120 resistance level could send the price towards the 50% Fib retracement level of the recent decline from the $31,725 swing high to $29,300 low. Any more gains might change the bias and bitcoin price could rise towards the $31,200 level.

More Losses in BTC?

If bitcoin fails to recover above the $30,000 resistance zone, it could continue to move down. An immediate support on the downside is near the $29,200 level.

The next major support is near the $28,500 level. A downside break below the $28,500 support may perhaps spark another decline. In the stated case, the price could dive towards the $27,200 support zone in the near term. Download Bitcoin Miner Awesom Miner Official for Windows. Safe install and earn ETH/BTC.

Technical indicators:

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

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well below the 40 level.

Major Support Levels – $29,000, followed by $28,500.

Major Resistance Levels – $29,900, $30,120 and $30,500.

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
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In a world where uncertainty reigns supreme, Aayush Jindal stands as a guiding light, illuminating the path to financial success with his unparalleled expertise, unwavering integrity, and boundless enthusiasm for the markets.

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