Bitcoin’s price fell short of $31,800 and reversed a large portion of its upward movement. Bitcoin is trying a new uptrend from the $29,950 area where it found support.
A peak was established close to $31,790, and then there followed a precipitous drop. There was a breakdown below $30,400 after testing support at $31,000. It reached an all-time high of a little under $30,000. Near $29,950, the price has made a bottom and is now consolidating losses.
In recent trading, the price of bitcoin has dropped below $30,500 and the 100 hourly Simple moving average. On the hourly chart for BTC/USD, we can see a strong bearish trend line forming with resistance at $30,320.
The $30,300 price point and the prevailing trend line provide near-term resistance. The first significant barrier is at about $30,400. Just above the 23.6% Fibonacci retracement level of the downtrend from the $31,790 swing high to the $29,950 low may signal the start of an uptrend.
In the scenario described, BTC might climb to a price of $30,850. The drop from the $31,790 high to the $29,950 low is almost exactly half of that distance. The next significant barrier is at the $31,150 mark. If prices continue rising, they may eventually break over the $31,80 barrier level.
Bitcoin may begin a downward correction if it is unable to break below the $30,380 barrier level. On the downside, the $30,200 mark provides some immediate support.
If prices drop below the $30,000 mark, the next significant support is at $29,750. If losses continue, the $29,350 level might become a key support area.
Also Read: The Multichain Crash and Exploits Have a Negative Impact on the Fantom Network
