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Bitcoin Price Plunges After Rejection, Here’s Why Bears Aim Fresh Lows

Bitcoin’s price is experiencing a downward trend as it moves below the critical $30,000 pivot level and the 100 hourly Simple Moving Average (SMA). The BTC/USD pair’s hourly chart from Kraken shows a key bullish trend line forming with support around $29,720.

In an attempt to rise above the $30,400 resistance zone, Bitcoin encountered difficulties and began to decline once again. The bearish reaction led to a break below the $30,000 support and the 100 hourly SMA. Moreover, the price also fell below the 61.8% Fibonacci retracement level of the upward move from the $29,650 swing low to the $30,333 high.

At present, Bitcoin is trading below both the $30,000 level and the 100 hourly SMA, with the mentioned bullish trend line acting as a crucial support of around $29,720. The immediate resistance lies near the $30,000 level and the 100 hourly SMA. A more significant resistance awaits at the $30,150 level, followed by $30,350 and $30,400 levels. A decisive close above $30,400 might trigger a fresh upward movement, potentially pushing the price towards the $30,850 level. Further gains could pave the way for a move toward the $31,200 resistance zone.

However, if Bitcoin fails to overcome the $30,000 resistance, it may continue its downward trajectory. Immediate support is expected around $29,720 and the trend line. If this support is breached, the next major support level lies at $29,650, and a further breakdown might lead the price to revisit the key support at $29,500. Failing to maintain above $29,500 could expose Bitcoin to new lows below $29,200, with the next support at approximately $28,650. In the worst-case scenario, a move toward the $28,200 level may be on the horizon in the near term.

The hourly Moving Average Convergence Divergence (MACD) indicator suggests increasing bearish momentum, while the Relative Strength Index (RSI) for BTC/USD is below the crucial 50 level, indicating a weakening bullish sentiment.

In conclusion, Bitcoin is facing significant bearish pressure as it struggles to break above the $30,000 resistance level. The ongoing downward trend may lead to further declines, but a decisive break above $30,400 could trigger a potential bullish reversal. Traders should closely monitor the support levels mentioned to gauge Bitcoin’s next moves in the market.

 

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