Bitcoin Price Signals Downside Correction Before Fresh Increase

Aayush Jindal

1 year ago

2 mins read

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Bitcoin price is correcting gains from the $31,400 zone. BTC could revisit the $29,200 support or even $28,500 before it starts a fresh increase.

Bitcoin is currently correcting gains from the $31,400 zone.
The price is trading below $30,500 and the 100 hourly Simple moving average.
There is a connecting bearish trend line forming with resistance near $30,550 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could continue to correct lower toward the $29,200 support or $28,500.

Bitcoin Price Starts Downside Correction

Bitcoin price remained well-bid above the $29,500 resistance zone. BTC cleared the $30,000 resistance to move further into a positive zone. Finally, there was a push above the $31,000 zone.

The price tested the $31,500 zone. A high is formed near $31,435 and the price is now correcting lower. There was a move below the $30,500 level. The price traded below the 50% Fib retracement level of the upward move from the $29,550 swing low to the $31,435 high.

Bitcoin price is now trading below $30,500 and the 100 hourly Simple moving average. There is also a connecting bearish trend line forming with resistance near $30,550 on the hourly chart of the BTC/USD pair.

The pair is trading close to the 76.4% Fib retracement level of the upward move from the $29,550 swing low to the $31,435 high. If the price remains stable above the $30,000 level, it could soon start a fresh increase. On the upside, the price is facing resistance near the $30,400 level and the 100 hourly Simple moving average.

Source: BTCUSD on TradingView.com

The first major resistance is near the $30,550 level and the trend line, above which the price might revisit the $31,400 resistance zone. The next major resistance is near the $32,000 level. Any more gains could send the price toward the $32,500 resistance zone.

More Downsides in BTC?

If Bitcoin’s price fails to clear the $30,550 resistance, it could continue to move down. Immediate support on the downside is near the $30,000 level.

The next major support is near the $29,550 level, below which there is a risk of a move toward the $29,200 support. Any more losses might send the price toward $28,500 in the near term.

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 below the 50 level.

Major Support Levels – $30,000, followed by $29,550.

Major Resistance Levels – $30,400, $30,550, and $31,400.

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.

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