Bitcoin’s attempts to surpass critical resistance levels have faced significant challenges, with the cryptocurrency failing to break above $29,600. The price is currently trading below the 100 hourly Simple Moving Average (SMA) and is in danger of further declines if it cannot breach the $29,300 barrier. Technical indicators suggest caution as BTC/USD navigates potential support and resistance levels.
Stagnation Below Resistance
Bitcoin’s price has struggled to gain momentum above the crucial levels of $29,300 and $29,600. Although a short-term recovery attempt was observed above the $29,200 resistance zone, the upside was restricted. Notably, the 50% Fib retracement level of the recent upward wave from $28,880 to $30,334 proved to be a formidable barrier, as bears defended the $29,600 level.
Bearish Trendline Break and Moving Average
During the recent decline, the BTC/USD pair broke below a significant bullish trendline with support near $29,300. Furthermore, the price is currently trading below the 100 hourly SMA, indicating bearish sentiment prevailing in the short term.
Resistance and Upside Potential
Immediate resistance is positioned around the $29,300 level and the 100 hourly SMA. To initiate a more substantial recovery, Bitcoin must successfully surpass the $29,600 resistance. In such a scenario, the next significant hurdles lie at $29,800 and $30,000, which correspond to the 61.8% Fib retracement level of the previous upward wave.[
Downside Risks and Support Levels
In the absence of a break above $29,300, Bitcoin may face further downward movement. Initial support is located near $29,000, and failure to hold this level could intensify selling pressure. A breach below $28,880, which marks the recent low, might lead to accelerated declines. The subsequent support level can be found at $28,200, followed by $27,700 in the near term.
Caution in Technical Indicators
Technical indicators are offering cautionary signals as well. The hourly Moving Average Convergence Divergence (MACD) is moving deeper into the bearish zone, indicating potential downside pressure. Additionally, the hourly Relative Strength Index (RSI) has dipped below the 50 level, suggesting bearish momentum in the short term.
Bitcoin’s price faces challenges in breaking crucial resistance levels and remains below the 100 hourly SMA. The lack of substantial evidence to support a swift recovery raises caution among traders. Immediate support at $29,000 and $28,880 are essential levels to watch, and if breached, further declines might be in the cards. Conversely, a successful break above $29,600 could pave the way for a potential rally toward $30,000 and beyond. Traders should approach the market with vigilance in the current technical landscape.