Bitcoin Extends Losses, Why $30K Holds The Key For Next Wave

June 12, 2021

Bitcoin price extended its decline below the $33,000 support zone against the US Dollar. BTC is currently recovering and it must stay above $30,000 to avoid a larger decline.

Bitcoin extended its decline below the $33,500 and $33,000 support levels.
The price is currently well below $35,000 and the 100 hourly simple moving average.
There is a key rising channel forming with support near $32,300 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could start a fresh decline if there is a break below $32,300 and $32,000.

Bitcoin Price is Under Pressure
Bitcoin remained in a bearish zone below the $35,500 support zone and extended its decline. BTC broke the $33,500 support level and settled below the 100 hourly simple moving average.
The price even declined below the $32,000 support zone. A low was formed near $31,065 before the price started an upside correction. There was a break above the $32,000 and $32,500 levels. The price climbed above the 23.6% Fib retracement level of the recent decline from the $36,820 swing high to $31,065 low.
However, the price is facing a strong resistance near the $34,000 level. It seems like the 50% Fib retracement level of the recent decline from the $36,820 swing high to $31,065 low is acting as a hurdle.

Source: BTCUSD on TradingView.com
There is also a key rising channel forming with support near $32,300 on the hourly chart of the BTC/USD pair. The first major resistance is near the $33,500 level. The main resistance is near the $34,000 zone, above which the price could test the 100 hourly simple moving average.
More Losses in BTC?
If bitcoin fails to clear the $34,000 resistance, it could continue to move down. An initial support on the downside is near the $32,500 level.
The first major support is near the $32,300 level and the channel trend line. If there is a downside break below the channel support, the price could dive to $31,000. The main support is near the $30,000 level. If the bulls fail to protect the $30,000 support zone, there is a risk of a sharp decline.
Technical indicators:
Hourly MACD – The MACD is slowly gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well below the 50 level.
Major Support Levels – $32,300, followed by $31,000.
Major Resistance Levels – $33,500, $34,000 and $35,000.