The cryptocurrency market is once again witnessing a downward shift in the price of Bitcoin (BTC), as it struggles to maintain its footing below the crucial support level of $29,500. This bearish trend is further underscored by the fact that the price is currently trading below both the $29,500 mark and the 100 hourly Simple Moving Average (SMA).
Analyzing the hourly chart of the BTC/USD pair with a data feed from Kraken, it becomes evident that a connecting bearish trend line is forming, indicating resistance near $29,400. This line suggests that the challenges for Bitcoin might persist if it remains below the $30,000 threshold for an extended period.
The recent decline of Bitcoin’s price was initiated when it failed to establish stability above the $30,000 resistance zone. This led to a subsequent drop below the $29,650 and $29,500 levels, plunging the cryptocurrency into bearish territory. The market’s assessment led to a test of the $29,100 support zone, and a low was formed around $29,100. Despite the consolidation of losses and a minor upside correction above the $29,250 resistance zone, Bitcoin’s price remains trapped below $29,500.
Furthermore, the hourly chart showcases the presence of a bearish trend line, mirroring the $29,400 resistance level. This trend line is reinforced by the proximity to the 50% Fibonacci retracement level, measured from the swing high of $29,694 to the recent low of $29,100. A break above this trend line might lead to a potential ascent toward $29,650, with the ultimate challenge being the $30,000 mark. Breaching and sustaining above this level could catalyze a steady uptrend, possibly reaching $30,500 or even $31,200 in the coming days.
However, if Bitcoin fails to overcome the resistance at $29,400, the prevailing downward pressure may persist. The immediate support lies around $29,200, followed by a more substantial support near $29,000, which corresponds to the recent low. Should the price breach this $29,000 level, a sustained downtrend could materialize, with a possible revisit to the $28,800 level. Subsequent losses could potentially lead to a further decline toward $28,500 in the near term.
Assessing the technical indicators, the hourly Moving Average Convergence Divergence (MACD) reveals a bearish momentum losing its pace in the bearish zone. Additionally, the Relative Strength Index (RSI) for BTC/USD is currently below the 50 level, indicating a bearish sentiment.
Bitcoin’s struggle to overcome the resistance levels has led to a bearish outlook, with the cryptocurrency’s price residing below key thresholds. The market’s trajectory will be largely influenced by its ability to breach and sustain above the resistance zones, or risk facing continued downward pressure towards support levels.