Bitcoin price indicates a potential downward correction before a new increase.

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 indicates a potential downward correction before a new increase. Bitcoin Price Starts Downside Correction

Bitcoin's price has remained strong above the $29,500 resistance zone and has cleared the $30,000 resistance level, moving further into a positive zone. The price has even pushed above the $31,000 zone, testing the $31,500 zone and forming a high near $31,435. However, the price is now correcting lower and trading below $30,500 and the 100 hourly Simple moving average. A bearish trend line is also 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 stabilizes 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. Bitcoin price indicates a potential downward correction before a new increase.

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.

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.