Bitcoin Holds Key Support, Why BTC Must Clear This Resistance

 2022-05-17 09:34:16

Bitcoin corrected lower and tested the $29,000 support against the US Dollar. BTC must settle above the $30,800 resistance to start a decent increase.

 

Bitcoin price started a downside correction from the $31,500 zone. BTC traded below the $30,000 support zone and the 100 hourly simple moving average. There was a move below the $29,500 level, but the bulls were active near the $29,000 zone. A low is formed near $29,060 and the price is now recovering losses. There was a clear move above the $29,500 level.


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Bitcoin is now trading above the $30,000 level and the 100 hourly simple moving average. There was a break above a connecting bearish trend line with resistance near $29,600 on the hourly chart of the BTC/USDT pair.

An immediate resistance is near the $30,800 level. It is near the 50% Fib retracement level of the recent decline from the $31,390 swing high to $29,060 low. A successful close above the $30,300 level could open the doors for a decent increase.

 

The next major resistance is near the $31,400 level. A clear move above the $30,800 and $31,400 resistance levels might start a fresh increase in the coming sessions. The next key resistance could be near the $32,500 level, above which the price might rise towards $34,000.

 

If bitcoin fails to gain pace above the $31,400 resistance zone, it could start a fresh decline. An immediate support on the downside is near the $29,600 level. The first major support is near the $29,000 level. A downside break and close below the $29,000 support might start a major decline. In the stated case, the price could decline towards the $89,000 level.

 

Technical indicators:

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

Hourly RSI (Relative Strength Index) – The RSI for BTC/USDT is now above the 50 level.

Major Support Levels – $29,600, followed by $29,000.

Major Resistance Levels – $30,800, $31,400 and $32,500.

 

DISCLAIMER: The analysis of cryptocurrencies in real-time should be taken for informational purposes only, and in no case should it be taken as an investment signal. Every investment and trading move involves risk. You should conduct your own research when making a decision.

 

 


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