Bitcoin Price Indicates A Downward Correction Before a New Increase

The price of bitcoin is reversing gains from the $31,400 region. Before beginning a new advance, BTC may test the support at $29,200 or possibly $28,500.

• At the moment, Bitcoin is reversing gains made from the $31,400 region.
• The price is trading beneath both the 100 hourly Simple moving average and the $30,500 mark.
• On the hourly chart of the BTC/USD pair (data feed from Kraken), a connecting bearish trend line is forming with resistance close to $30,550.
• The pair may continue to decline towards the $28,500 or the $29,200 support level.

Bitcoin Price Starts a Correction Downward

The price of bitcoin was strongly bid over the $29,500 resistance level. BTC overcame the $30,000 barrier to advance farther into the good area. The price finally pushed above the $31,000 level.

The pricing range of $31,500 was tested. The price has set a peak near $31,435 and is currently correcting lower. The price dropped below the $30,500 mark. Price fell below the 50% Fib retracement level of the upward movement from the $31,435 high to the swing low of $29,550.

The bitcoin price is currently trading below $30,500 as well as the 100 hourly simple moving average. On the hourly chart of the BTC/USD pair, a connecting negative trend line is also developing, with resistance located close to $30,550.

Close to the 76.4% Fib retracement level of the upward movement from the swing low of $29,550 to the high of $31,435 is where the pair is currently trading. Price growth could soon resume if it holds steady above the $30,000 mark. Price encounters resistance on the upswing close to the $30,400 mark and the 100 hourly simple moving average.

The trend line and the $30,550 level are the first significant resistance levels, and if they are crossed, the price may revisit the $31,400 barrier region. The $32,000 mark represents the next important resistance. The price may move towards the $32,500 barrier area if there are any further gains.

More The downside in Bitcoin?

Bitcoin's price may drop further if it is unable to overcome the $30,550 obstacle. On the downside, there is immediate support close to the $30,000 mark.

Below this level, there is a chance that prices will move in the direction of the $29,200 support, which is the next significant level of support. In the foreseeable future, if there are any additional losses, the price might move toward $28,500.

Statistical indicators:

Hourly MACD: The MACD has started to move more quickly towards the bearish side.

The Relative Strength Index (RSI) for BTC/USD is not at a level of 50 on an hourly basis.

$30,550 is the first Major Support Level, then $29,550.

Principal Resistance Levels: $30,400, $30,550, and $31,400.