Bitcoin Facing Uphill Task, Why BTC Could Drop To $30K Again
Bitcoin price is showing recovering signs above $32,000 against the US Dollar. BTC is facing an uphill task at $34,000 and it is likely to continue lower towards $30,000.
- Bitcoin is correcting higher from $28,865 and it is trading above the $32,000 resistance.
- The price is facing a strong resistance near $34,000 and the 100 simple moving average (4-hours).
- There is a short-term contracting triangle forming with resistance near $33,000 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
- The pair could face a strong resistance near the $33,800 and $34,000 levels in the near term.
Bitcoin Price Remains At Risk
This past week, bitcoin price saw a sharp decline below the $35,000 and $34,000 support levels against the US Dollar. The BTC/USD pair even tumbled below the $30,000 support and settled well below the 100 simple moving average (4-hours).
A low was formed near $28,800 before the price started an upside correction. It broke the $30,000 level and it even recovered above the $31,500 level.
There was also a test of the 50% Fib retracement level of the downward move from the $37,847 swing high to $28,867 low. There is also a short-term contracting triangle forming with resistance near $33,000 on the 4-hours chart of the BTC/USD pair.
Source: BTCUSD on TradingView.com
If there is a triangle break, the price could face hurdles near the $33,800 and $34,000 levels. There is also a key bearish trend line forming near $34,500 on the same chart. It is close to the 61.8% Fib retracement level of the downward move from the $37,847 swing high to $28,867 low.
A close above the $34,000 and $34,500 resistance levels could open the doors for a larger increase. The next major hurdle is near the $38,000 level.
Fresh Drop in BTC?
If bitcoin fails to clear the $33,500 and $34,000 resistance levels, there is a risk of another decline. An initial support on the downside is near the $31,800 level.
A clear break below the $31,800 and $31,500 support levels could clear the path for a push towards the $30,000 support zone in the near term. Any more losses might call for a test of $28,800.
Technical indicators
4 hours MACD – The MACD for BTC/USD is slowly gaining momentum in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is rising towards the 50 level.
Major Support Level – $30,000
Major Resistance Level – $34,000
OhNoCrypto
via https://www.ohnocrypto.com
Aayush Jindal, @KhareemSudlow