Bitcoin’s price is gradually climbing higher, surmounting the $29,200 and $29,300 levels. Currently trading above $29,300 and the 100 hourly Simple Moving Average (SMA), the cryptocurrency is showing signs of strength.
During the recent upward move, the price broke a key bearish trend line with resistance near $29,375 on the BTC/USD hourly chart, sourced from Kraken. This development signals a potential bullish trend ahead. The bulls also defended the $29,050 support zone, contributing to the fresh upswing.
Bitcoin’s upward momentum enabled it to surpass the 50% Fibonacci retracement level of the previous downward move from the $29,678 swing high to the $29,070 support. While facing resistance near the $29,450 level, it managed to stay above the 61.8% Fibonacci retracement level, which may serve as a crucial support level.
The immediate major resistance lies near the $29,700 level, and a successful breach above it might lead the price to target the crucial $30,000 resistance zone. If Bitcoin manages to close above $30,000, it could spark further gains, possibly extending toward the $30,400 resistance level.
On the flip side, failure to overcome the $29,700 resistance might trigger a downside correction. The first line of support is around $29,300, followed by the 100 hourly SMA. A more substantial support level can be found near $29,050, and further losses may lead the price toward the $28,800 level.
Technical indicators, such as the hourly MACD and Relative Strength Index (RSI), are indicating a bullish momentum, with the RSI currently above the 50 level.
As Bitcoin continues to show strength in its upward movement, traders are closely watching the key resistance levels and potential support zones. The $30,000 mark remains a critical psychological barrier, and any successful breakthrough above it might fuel optimism and confidence among investors. Conversely, a failure to surpass the resistance levels could lead to cautiousness and possible corrective moves in the short term.
