Uphill Bitcoin Task Facing, Why BTC Could Drop to $ 30K Again

The Bitcoin price is showing signs recovering above $ 32,000 against the US Dollar. BTC faces an uphill task at $ 34,000 and is likely to remain lower toward $ 30,000.

  • Bitcoin is curling higher of $ 28,865 and is trading above the $ 32,000 resistance.
  • The price faces strong resistance near $ 34,000 and the 100 simple (4-hour) moving average.
  • A short-term contracting triangle forms with resistance near $ 33,000 on the 4-hour chart of the BTC / USD pair (data feed from Kraken).
  • The pair could face strong resistance near the $ 33,800 and $ 34,000 levels in the near term.

Bitcoin Price Remains at Risk

This past week, the price of bitcoin saw a sharp decline below the $ 35,000 and $ 34,000 support levels against the US Dollar. The BTC / USD pair even fell below the $ 30,000 support and settled well below the 100 simple (4-hour) moving average.

A low near $ 28,800 was formed before the price began to reverse upside. It broke the $ 30,000 level and recovered even above the $ 31,500 level.

There was also a test of the level of the 50% Fib in the downward movement of the $ 37,847 swing high to $ 28,867 low. There is also a short-term contracting triangle forming with resistance near $ 33,000 on the 4-hour chart of the BTC / USD pair.

The price of Bitcoin

Source: BTCUSD on TradingView.com

In the event of a triangle breakup, the price could face obstacles near the $ 33,800 and $ 34,000 levels. There is also a key bearish trend line that makes up nearly $ 34,500 on the same chart. It’s close to the 61.8% Fib rating level of the move down from the $ 37,847 swing high to $ 28,867 low.

Closing above the $ 34,000 and $ 34,500 resistance levels could open the doors for larger increases. The next big hurdle is near the $ 38,000 level.

BTC Drop?

If bitcoin fails to clear the $ 33,500 and $ 34,000 resistance levels, there is another risk of decline. Initial support on the downside is close to the $ 31,800 level.

A clear cut below the $ 31,800 and $ 31,500 support levels could clear the path for a push toward the $ 30,000 support zone in the near term. Any further losses could call for a trial of $ 28,800.

Technical indicators

4 hours MACD – The MACD for BTC / USD is slowly gaining momentum in the bullish zone.

4 Hours RSI (Relative Strength Index) – The RSI for BTC / USD is rising towards the 50 level.

Major Assistance Level – $ 30,000

Major Resistance Level – $ 34,000

Source