Bitcoin (BTC) has been undergoing a correction in its price, currently trading below the $29,800 mark. Despite this correction, the cryptocurrency remains above the $29,400 support level and the 100-hourly Simple Moving Average (SMA). Let’s delve into the technical analysis of BTC’s recent price action:
The BTC/USD hourly chart from Kraken’s data feed reveals some significant developments:
Bitcoin witnessed a decent upward movement, surpassing resistance levels at $29,400 and $29,500. It even crossed the $30,000 threshold, but a daily close above this level was not achieved.
The peak was around $30,190, following which the price initiated a downward correction.
Key support was breached as the price fell below $30,000 and $29,800. Moreover, a crucial bullish trend line support at approximately $29,840 was broken.
Currently, Bitcoin’s price exceeds $29,400 and is supported by the 100-hourly SMA. This level is also significant as it represents a pivot zone.
Bitcoin’s immediate resistance lies around the $29,680 level. The first major resistance point is at $29,800, followed by $30,000. Should the price successfully breach this level, it could retest $30,200.
A close above the $30,200 resistance might trigger a new steady growth phase, potentially driving the price towards $31,200 or even $32,000 in the coming days.
Conversely, failure to overcome the $29,800 resistance could lead to a renewed decline. The first line of support is at $29,400, followed by a more crucial support level of around $29,300 or the 100-hourly SMA.
A break below $29,300 might signal the start of bearish movements, possibly revisiting the $29,000 level. Subsequent losses could even push the price toward the $28,680 level in the near future.
The technical indicators offer further insights:
The hourly MACD (Moving Average Convergence Divergence) shows an acceleration in the bearish zone.
The Relative Strength Index (RSI) for BTC/USD has fallen below 50, indicating weakening bullish momentum.
Bitcoin’s recent correction is a focal point for traders and investors alike. While there’s potential for a resumption of an upward trend, the market sentiment will be influenced by the price’s ability to clear crucial resistance levels and maintain support at key points.
Source: https://bitcoinworld.co.in/bitcoin-price-correction-analyzing-key-support-and-resistance-levels/