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TA: Why Bitcoin Still At Risk of A Fresh Decline Below $29K

Started by Bitcoin, May 16, 2022, 05:55 am

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Bitcoin

TA: Why Bitcoin Still At Risk of A Fresh Decline Below $29K

Bitcoin attempted a recovery wave above the $30,000 resistance against the US Dollar. BTC is struggling near $31,000 and might start a fresh decline.



  • Bitcoin recovered above the $30,000 level but struggled above $31,000.

  • The price is now well above the $30,000 level and the 100 hourly simple moving average.

  • There is a key bullish trend line forming with support near $30,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).

  • The pair could start a fresh decline if it clears the $30,000 support zone


Bitcoin Price Faces Hurdles

Bitcoin price started a decent recovery wave from the $25,000 support zone. BTC gained pace for a move above the $28,000 level and the 100 hourly simple moving average.


It even cleared the $30,000 resistance zone. However, the bulls struggled to stay in action above the $31,000 level. A high is formed near $31,390 and the price is now slowing moving lower. There was a move below the $31,000 level.


Bitcoin moved below the 23.6% Fib retracement level of the upward move from the $28,600 swing low to $31,390 high. The price is now approaching the $30,400 support.


There is also a key bullish trend line forming with support near $30,400 on the hourly chart of the BTC/USD pair. The next major support is near the $30,000 zone. It is near the 50% Fib retracement level of the upward move from the $28,600 swing low to $31,390 high.



Source: BTCUSD on TradingView.com

A downside break and close below the $30,000 support might start a major decline. In the stated case, the price could decline towards the $29,000 level. The next major support is near $28,000 level, below which the price might start a fresh bearish wave.


More Upsides in BTC?

If bitcoin stays above the $30,000 support zone, it could start a fresh increase. An immediate resistance on the upside is near the $31,000 level.


The next major resistance is near the $31,400 level. A clear move above the $31,000 and $31,400 resistance levels might start a fresh increase in the coming sessions. The next key resistance could be near the $32,500 level, above which the price might rise above $33,000.


Technical indicators:


Hourly MACD - The MACD is now gaining pace in the bearish zone.


Hourly RSI (Relative Strength Index) - The RSI for BTC/USD is no near the 50 level.


Major Support Levels - $30,400, followed by $30,000.


Major Resistance Levels - $31,000, $31,400 and $32,500.


Source: TA: Why Bitcoin Still At Risk of A Fresh Decline Below $29K