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Bitcoin Price Analysis: BTC Rally Loses Steam Above $30K

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  • Bitcoin price started a fresh increase above the $28,000 zone against the US Dollar.
  • The price is now trading above $28,000 and the 55 simple moving average (4 hours).
  • There was a break above a major contracting triangle with resistance near $28,400 on the 4-hour chart of the BTC/USD pair (data feed from Coinbase).
  • The pair could continue to rise if it stays above the $29,000 support zone.

Bitcoin price is showing positive signs above $28,000 against the US Dollar. BTC might correct lower but dips could be limited below the $28,800 zone.

Bitcoin Price Analysis

Bitcoin price started a steady increase from the $27,500 support zone. The price gained and cleared many hurdles near the $28,500 and $28,800 levels.

There was a clear move above the $29,200 level and the 55 simple moving average (4 hours). Besides, there was a break above a major contracting triangle with resistance near $28,400 on the 4-hour chart of the BTC/USD pair.

The price even rallied above the $30,000 resistance zone. However, the bears were active near the $30,500 zone. A high was formed near $30,584 before there was a downside correction. The price traded below $30,050 and tested the 23.6% Fib retracement level of the upward move from the $27,814 swing low to the $30,584 high.

The price is now trading well above $28,800 and the 55 simple moving average (4 hours). Immediate resistance on the upside is near the $30,250 level. The first major resistance is near the $30,500 level, above which the price could rise toward the $31,500 zone.

Any more gains might send the price toward the $32,000 zone. If there is no upside break, the price might start a downside correction below $30,000.

The next key support is near the $29,200 level or the 50% Fib retracement level of the upward move from the $27,814 swing low to the $30,584 high. Any more losses might call for a move toward the $28,800 support zone.

Bitcoin Price
Bitcoin Price

Looking at the chart, Bitcoin price is clearly trading above $28,800 and the 55 simple moving average (4 hours). Overall, the price could continue to rise if it stays above the $29,000 support zone.

Technical Indicators

4 hours MACD – The MACD is now losing momentum in the bullish zone.

4 hours RSI (Relative Strength Index) – The RSI is now above the 60 level.

Key Support Levels – $29,200 and $28,800.

Key Resistance Levels – $30,500, $31,500, and $32,000.

Aayush Jindal
Aayush Jindal
Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession, loves blogging and observing financial markets.

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