Bitcoin Remains At Risk, Why BTC Could Nosedive Below $30K
Bitcoin price is trading in a bearish zone below $33,000 against the US Dollar. BTC could extend its decline and it could even dive below $30,000.
Bitcoin remains in a bearish zone, but it is holding the $31,000 support zone.
The price is now trading well below $32,500 and the 100 hourly simple moving average.
There is a key bearish trend line forming with resistance near $31,850 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair must settle above $32,000 and the 100 hourly SMA to start a decent recovery in the near term.
Bitcoin Price Turns Red
In the past few days, bitcoin price followed a bearish pattern below the $33,000 pivot level. BTC even settled below the $32,000 support zone and the 100 hourly simple moving average.
The price is now holding the $31,000 support zone and it is consolidating in a range. The recent low was formed near $31,154 and the price is now correcting losses. There was a break above the $31,500 resistance zone.
The price was able to climb above the 23.6% Fib retracement level of the recent decline from the $32,450 swing high to $31,154 low. An immediate resistance on the upside is near the $31,800 level and the 100 hourly SMA.
The 50% Fib retracement level of the recent decline from the $32,450 swing high to $31,154 low is also near the $31,800 level. Moreover, there is a key bearish trend line forming with resistance near $31,850 on the hourly chart of the BTC/USD pair.
Source: BTCUSD on TradingView.com
A close above the trend line resistance could initiate a decent recovery above $32,000. A close above the $32,000 level may push the price towards $33,000.
More Losses in BTC?
If bitcoin fails to recover above the $31,800 and $32,000 resistance levels, there is a risk of more losses. An initial support on the downside is near the $31,200 level.
The first major support is now near the $31,000 zone. A close below the $31,000 level could spark a steady decline in the near term. In the stated case, the price is likely to even trade below the $30,000 support level.
Technical indicators:
Hourly MACD – The MACD is slowly losing pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now just below the 50 level.
Major Support Levels – $31,200, followed by $31,000.
Major Resistance Levels – $31,800, $32,000 and $33,000.