Bitcoin, the world’s leading cryptocurrency, is currently displaying worrisome signs as it trades well below the critical $30,500 zone. This recent downtrend has left investors on edge, closely monitoring the market for any signs of a potential recovery.
At present, Bitcoin’s price is struggling to regain momentum, trading below both $30,300 and the 100 hourly Simple Moving Average. On the BTC/USD hourly chart sourced from Kraken, there is a notable bearish trend line forming with resistance near $30,200. This resistance level, combined with the failure to breach the crucial $30,500 resistance zone, indicates a potential continuation of the downward movement.
Despite a brief attempt to rally above the $30,250 level, Bitcoin failed to gather sufficient bullish strength, causing it to remain below the key resistance zone. The price reached a high point near $30,447 before dropping below the significant $30,000 mark. It even hit a new weekly low at $29,669 before embarking on a corrective rebound.
Currently, the price has managed to climb back above $30,000; however, it is still struggling below $30,300 and the 100 hourly Simple Moving Average. Immediate resistance awaits near the $30,200 level, along with the bearish trend line and the 61.8% Fibonacci retracement level, calculated from the recent swing high of $30,447 to the low of $29,669.
For any hope of a potential recovery, Bitcoin needs to overcome the major resistance levels situated at $30,265, $30,450, and the critical $30,500 mark. A breakthrough beyond $30,500 could potentially trigger a fresh surge, with the next significant resistance level residing near $30,850. Further gains might pave the way for a push toward the $31,500 resistance zone.
However, if Bitcoin fails to surpass the $30,500 resistance, the current downtrend could persist. Immediate support is expected near the $29,850 level, followed closely by the $29,200 support zone. Any further losses may push the price toward the $28,750 level in the near future.
Technical indicators paint a bearish picture as well, with the hourly Moving Average Convergence Divergence (MACD) gaining momentum in the bearish zone. The Relative Strength Index (RSI) for BTC/USD is hovering around the 50 level, suggesting a balanced but cautious market sentiment.
Bitcoin’s price is currently facing significant resistance and exhibiting a bearish trend. Traders and investors must closely monitor the $30,500 resistance level and subsequent support levels, such as $29,850 and $29,200, to assess the potential direction of Bitcoin’s price in the short term. The cryptocurrency market eagerly awaits a clear breakthrough or reversal of the ongoing bearish trend.
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