Bitcoin Price Relatively Muted – What Could Trigger A Sharp Decline?

Bitcoin price is still struggling below the $29,650 zone. BTC could gain bearish momentum if there is a close below the $29,100 support.

Bitcoin is showing a few bearish signs below the $29,650 zone.
The price is trading below $29,400 and the 100 hourly Simple moving average.
There is a short-term bullish trend line forming with support near $29,320 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could continue to move down if it breaks the $29,250 and $29,100 support levels.

Bitcoin Price Stuck Below $30K

Bitcoin price remained well below the $30,000 resistance zone. BTC attempted a short-term upward move but the bears were active near the $29,650 resistance zone.

A high was formed near $29,657 before there was a fresh decline to $29,250. The price is now consolidating and trading above the 23.6% Fib retracement level of the recent decline from the $29,657 swing high to the $29,250 low.

Bitcoin is now trading below $29,400 and the 100 hourly Simple moving average. There is also a short-term bullish trend line forming with support near $29,320 on the hourly chart of the BTC/USD pair.

Immediate resistance is near the $29,450 level. It is close to the 50% Fib retracement level of the recent decline from the $29,657 swing high to the $29,250 low. The next major resistance is near $29,500. The main resistance is now forming near the $29,650 level.

Source: BTCUSD on TradingView.com

A close above the $29,650 resistance could send the price toward the $30,000 resistance zone. Any more gains might change the trend and the price might rise toward $30,500. In the stated case, the price could even rise toward $31,200 or even $32,200 in the coming days.

More Losses In BTC?

If Bitcoin fails to clear the $29,650 resistance, it could continue to move down. Immediate support on the downside is near the trend line.

The next major support is near the $29,250 level. The first key support is near $29,100. A downside break below the $29,100 level might start another steady decline. In the stated case, the price could drop toward $28,400.

Technical indicators:

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

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

Major Support Levels – $29,250, followed by $29,100.

Major Resistance Levels – $29,450, $29,650, and $30,000.

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