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TA: Bitcoin Attempts Fresh Increase, Why 100 SMA Is The Key

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Bitcoin 2
03
Jun

Bitcoin fund support near $29,350 and recovered higher against the US Dollar. BTC must clear the $31,000 resistance and the 100 hourly SMA to continue higher.

  • Bitcoin started a recovery wave from the $29,350 zone.
  • The price is now trading below the $31,000 level and the 100 hourly simple moving average.
  • There is a major bearish trend line forming with resistance near $31,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could resume its decline if there is no clear move above the $31,000 resistance.

Bitcoin Price Reclaims $30K

Bitcoin price extended its decline below the $30,000 support zone. However, downsides were limited below the $29,500 level. The price formed a base near $29,350 and started a recovery wave.

There was a move above the $30,000 resistance zone. The price climbed above the 23.6% Fib retracement level of the recent decline from the $32,400 swing high to $29,328 low. It even spiked above the $30,500 resistance zone, but the bears were active near the $31,000 level.

Bitcoin price is now trading below the $31,000 level and the 100 hourly simple moving average. There is also a major bearish trend line forming with resistance near $31,000 on the hourly chart of the BTC/USD pair.

The trend line is close to the 50% Fib retracement level of the recent decline from the $32,400 swing high to $29,328 low. An immediate resistance on the upside is near the $30,800 level. The next major resistance is near the $31,000 and the 100 hourly simple moving average.

Source: BTCUSD on TradingView.com

A clear move above the $31,000 resistance level could start another increase. In the stated case, the price could rise towards the $32,000 resistance. The next major resistance sits near the $32,400 level.

Fresh Decline in BTC?

If bitcoin fails to clear the $31,000 resistance zone, it could start another decline. An immediate support on the downside is near the $30,000 level.

The next major support is near the $29,350 level. A downside break below the $29,350 support may perhaps spark a sharp decline. In the stated case, the price could revisit the $28,250 support zone.

Technical indicators:

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

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

Major Support Levels – $30,000, followed by $29,350.

Major Resistance Levels – $30,800, $31,000 and $32,000.

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