TA: Bitcoin Nosedives To $28. 5K, Why Important Support Turned Resistance

Bitcoin price is down over 15% and it broke many supports near $32, 000 against the US Dollar. BTC even traded close to $28. FIVE CARAT and it is currently correcting losses.

  • Bitcoin started a strong decline below the $33, 000 and $32, 000 support levels.
  • The price is currently correcting losses, but it is now well below $32, 000 and the 100 hourly simple moving average.
  • There is a key bearish trend line forming with resistance near $32, 700 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair is likely to face a strong selling interest near the $32, 000 and $32, 800 levels.

Bitcoin Price Turns Red

Yesterday, we discussed the chances of more losses in bitcoin price below $33, 000. BTC failed to recover above $34, 500 also it started a strong decline. There was a break below many important supports near $33, 000 and $32, 800.

It opened the doors for more downsides below $32, 500 and the price settled well below the 100 hourly simple moving average . The price even tumbled below the $30, 000 level. It traded close to the $28, 500 support and it is currently correcting deficits.

There was a break above the $30, 000 level. Bitcoin price is now trading above the 23. 6% Fib retracement level of the recent decline from the $32, 707 high to $28, 808 low.

Bitcoin Price

Bitcoin Price

 Source:  BTCUSD on TradingView. com  

On the upside, the first resistance is near the $30, 800 and $31, 1000 levels. The 50% Fib retracement level of the recent decline from the $32, 707 high to $28, 808 low is also near the $30, 800 level. The next key resistance is near the $32, 000 degree.

There is also a key bearish trend line forming with level of resistance near $32, 700 on the per hour chart of the BTC/USD pair. To move into a positive zone, the price must clear $32, 800 and $33, thousand (support turned resistance).

More Downsides in BTC?

If bitcoin fails to recover above $31, 000 and $31, 800, there is a risk of another decline. An initial support on the downside is close to the $30, 000 level.

The first major support is nearby the $28, 800 and $28, five hundred levels. A close below the $28, 000 support zone could open opportunities for a drop towards the $25, 500 support zone in the coming sessions.

Technical indicators:

Hourly MACD – The MACD is slowly gaining momentum in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now recovering towards the 40 stage.

Major Support Levels – $30, 000, followed by $28, 800.

Major Resistance Levels – $30, 800, $31, 1000 and $32, 800.

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