Bitcoin rebounded above $30,000 after testing the $29,000 support. According to technical analysis by NewsBTC’s Aayush Jindal, BTC must break above the $30,500 resistance for it to start a decent rise.
Bitcoin Faces Barriers
Bitcoin started a downside correction from the $31,500 region and a bottom was formed near $29.060. There was a clear move above the $29,500 level and it surpassed the 23.6% Fib retracement level of the recent drop from the $31,390 high to $29,060 low.
Bitcoin is currently trading above the $30,000 level and the 100 hourly simple moving average. There was a break above a connecting bearish trend line with resistance near $29,600 on the hourly chart of the BTC/USD pair.
An immediate resistance is near the $30,300 level. This is close to the 50% Fib retracement level of the recent decline from the $31,390 high to $29,060 high. A successful close above the $30,300 level could open the doors for a decent increase.
The next major resistance is near the $31,400 level. A clear move above the $30,300 and $31,400 resistance levels could start a fresh increase in the coming sessions. The next key resistance could be near the $32,500 level. Above this, the price could rally to $34,000.
Will Bitcoin Drop Again?
Jindal says that if Bitcoin fails to gain momentum above the $31,400 resistance zone, it could start a fresh decline. An immediate support on the downside is near the $29,600 level. The first major support is near the $29,000 level. A downside break and close below the $29,000 support could lead to a massive decline.
What Do Technical Indicators Say?
- Hourly MACD – The MACD is now slowly gaining momentum in the bullish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
- Major Support Levels – 29,600 then $29,000
- Major Resistance Levels – $30,500, 31,400 and 32,500
