TA: Bitcoin Bears Keep Pushing, Why BTC Could Still Nosedive

Aayush Jindal

1 year ago

2 mins read

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Bitcoin is moving lower towards the key $29,500 support against the US Dollar. BTC must stay above $29,500 to avoid a major downside break.

Bitcoin is struggling to stay above the $29,500 support zone.
The price is now trading below the $30,500 level and the 100 hourly simple moving average.
There is a key contracting triangle forming with resistance near $31,050 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could start a major decline if there is a break below the $29,500 support.

Bitcoin Price Is Showing Bearish Signs

Bitcoin price failed to gain strength above the $31,200 and $31,500 resistance levels. However, there was no clear move, and the price started a fresh decline below $31,000.

There was a move below the $30,850 and $30,500 support levels. The price even spiked below the $30,000 level and settled below the 100 hourly simple moving average. It traded close to the $29,500 support zone and formed a low at $29,561. Download Bitcoin Miner Awesom Miner Official for Windows. Safe install and earn ETH/BTC.

Bitcoin is now consolidating losses and trading above the $29,800 level. An immediate resistance on the upside is near the $30,030 level. It is near the 23.6% Fib retracement level of the recent decline from the $31,550 swing high to $29,561 low.

The first major resistance is near the $30,500 level and the 100 hourly SMA. It is near the 50% Fib retracement level of the recent decline from the $31,550 swing high to $29,561 low.

Source: BTCUSD on TradingView.com

The main resistance is near the $31,000 level. There is also a key contracting triangle forming with resistance near $31,050 on the hourly chart of the BTC/USD pair. A clear move above the $31,050 resistance level could send the price further higher. The next major resistance might be $31,500, above which the price could start a decent increase.

Downside Break in BTC?

If bitcoin fails to clear the $31,050 resistance zone, it could start another decline. An immediate support on the downside is near the $29,650 level.

The next major support is near the $29,500 level. A downside break below the $29,500 support could put a lot of pressure on the bulls. In the stated case, the price could drop towards the $28,500 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 losing pace in the bearish zone.

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

Major Support Levels – $29,800, followed by $29,500.

Major Resistance Levels – $30,500, $31,050 and $31,500.

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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