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  • Writer's pictureDavid Manion

Bitcoin price at risk for next leg lower.


Bitcoin price at risk for next leg lower.
Bitcoin price at risk for next leg lower.

Bitcoin price is moving lower from the $30,200 zone. BTC is signaling a fresh decline and there is a risk of a drop toward the $28,500 support.

  • Bitcoin is struggling to remain in a positive zone above $29,200.

  • The price is trading below $29,500 and the 100 hourly Simple moving average.

  • There is a connecting bearish trend line forming with resistance near $29,450 on the hourly chart of the BTC/USD pair (data feed from Kraken).

  • The pair could continue to move down if it breaks the $29,200 support zone.

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Bitcoin Price Trims Gains

Bitcoin's price faced rejection once again above the $30,000 resistance zone. The price formed a high near $30,190 and reacted to the downside, falling below the $30,000 and $29,800 levels. The price has declined below the 50% Fib retracement level of the key increase from the $28,628 swing low to the $30,190 high. At present, the bulls are showing some resistance near the $29,300 zone. Bitcoin is currently trading below $29,500 and the 100 hourly Simple Moving Average. On the hourly chart of the BTC/USD pair, there is a bearish trend line forming with resistance near $29,450. If there is a fresh increase, the pair could face resistance near the 100 hourly Simple Moving Average at $29,400.


Source: BTCUSD on TradingView.com
Source: BTCUSD on TradingView.com

The next major resistance is near the trend line and $29,500. A close above the trend line could start a decent increase toward $30,000. To spark a steady uptrend, the price must settle above the $30,000 resistance. In the stated case, the price could rise toward $31,200 or even $32,000 in the coming days.


More Losses In BTC?

Bitcoin is facing resistance at the $29,500 level and may continue to move downwards. The immediate support is at $29,320, followed by a major support level at $29,220 or the 61.8% Fibonacci retracement level. If the price breaks below the $29,220 level, it could lead to bearish moves and a potential revisit of $29,000. Further losses may result in a move towards the $28,500 level 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 now below the 50 level.

Major Support Levels – $29,220, followed by $29,000.

Major Resistance Levels – $29,400, $29,500, and $30,000.


Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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