Bitcoin Forms Bullish Pattern, Why Break Above $31.5K Is The Key
Bitcoin remained strong above the $29,500 support against the US Dollar. BTC could start a major increase if there is a clear move above the $31,500 resistance.
- Bitcoin started a fresh increase from the $29,500 support zone.
- The price is now trading above the $30,000 level and the 100 hourly simple moving average.
- There is a key bearish trend line forming with resistance near $31,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could start a major upward move if there is a clear move above the $31,500 resistance.
Bitcoin Price Reverses Losses
Bitcoin price remained well bid above the $29,200 and $29,500 levels. A low was formed near $29,200 and the price started a fresh increase. There was a clear move above the $30,000 resistance zone.
The bulls were able to pump the price above the $30,500 level and the 100 hourly simple moving average. It even surged above the $31,000 level and even tested the $31,500 resistance zone. A high is formed near $31,550 and the price is now consolidating gains.
It already tested the 23.6% Fib retracement level of the recent increase from the $29,200 swing low to $31,550 high. An immediate resistance on the upside is near the $31,400 level.
There is also a key bearish trend line forming with resistance near $31,400 on the hourly chart of the BTC/USD pair. The first major resistance is near the $31,500 level. A clear move above the $31,500 resistance level could send the price further higher.
Source: BTCUSD on TradingView.com
The next major resistance might be $32,200. Any more gains might change the bias and bitcoin price could rise towards the $33,200 level.
Fresh Decline in BTC?
If bitcoin fails to clear the $31,500 resistance zone, it could start another decline. An immediate support on the downside is near the $30,850 level.
The next major support is near the $30,175 level. It is near the 50% Fib retracement level of the recent increase from the $29,200 swing low to $31,550 high. A downside break below the $30,175 support may perhaps spark another decline. In the stated case, the price could dive towards the $29,500 support zone in the near term.
Hourly MACD – The MACD is now losing pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well above the 50 level.
Major Support Levels – $30,850, followed by $30,175.
Major Resistance Levels – $31,400, $31,500 and $32,200.