Black_background_logo_BitcoinWorld-removebg-preview
Bitcoin News

Bitcoin Price Takes Hit – What Could Spark Larger Degree Correction

The leading cryptocurrency faces significant downward pressure as it slips below the crucial $30,500 support zone. The bears have the upper hand with the price trading below $30,300 and the 100-hourly Simple Moving Average.

On the hourly chart of the BTC/USD pair, sourced from Kraken’s data feed, a crucial bullish trend line with support near $30,500 was broken, indicating a potential further decline. Traders are closely watching the $28,400 support level, which could be the next target for the cryptocurrency.

Despite a brief spike in price, Bitcoin struggled to break through the $31,000 resistance zone. The limited upside movement led to a downward reaction, with the price falling below the $31,000 level. It also breached the $30,650 and $30,500 levels, including the key bullish trend line near $30,500.

Bitcoin found temporary support near $29,868 and is currently consolidating losses. However, the price remains below $30,300 and the 100 hourly Simple Moving Average, indicating continued bearish sentiment.

The immediate resistance lies near the $30,280 level, which aligns with the 23.6% Fibonacci retracement level of the recent decline from the $31,631 swing high to the $29,868 low. A significant recovery wave may occur if the price surpasses the $30,500 level.

Further resistance is expected near $30,750 and the 100 hourly Simple Moving Average, close to the 50% Fibonacci retracement level. A breakthrough above these levels could lead to a retest of $31,000, potentially paving the way for more gains. The ultimate obstacle awaits near the $31,400 level, with a successful breach signaling a potential move toward the $32,000 resistance zone.

However, downward momentum may persist if Bitcoin fails to overcome the $30,500 resistance. Immediate support can be found near the $29,850 level, followed by the recent low at $29,000. A more profound decline might bring the price closer to the $28,400 level, and further losses could lead to a test of the $28,000 level.

Technical indicators add to the bearish outlook, with the hourly MACD showing increasing momentum in the bearish zone. The Relative Strength Index (RSI) for BTC/USD is now below the 50 level, further indicating a shift in favor of the bears.

In summary, Bitcoin faces a critical juncture as it struggles to maintain support above $30,500. While recovery is possible if resistance levels are broken, the current technical analysis suggests a cautious approach as downward pressure remains. Traders and investors should closely monitor support and resistance levels for potential market movements.

 

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.