Bitcoin Price Analysis: BTC Eyes Recovery Above $31K

Bitcoin price is struggling below $31,000 against the US Dollar. BTC might extend losses if it stays below the $31,000 and $32,000 resistance levels.

Bitcoin Price Analysis

Bitcoin price failed to clear the $33,000 resistance zone. As a result, BTC started a fresh decline and traded below the key $30,000 support zone.

There was a clear move below the $28,500 level and the 55 simple moving average (4-hours). The price even traded below the $27,000 level. A low is formed near $25,338 before there was a recovery wave. There was a move above the $29,200 resistance zone.

The price even climbed above the 23.6% Fib retracement level of the downward move from the $40,050 swing high to $25,338 low. An immediate resistance on the upside is near the $30,250 level.

There is also a major bearish trend line forming with resistance near $30,250 on the 4-hours chart of the BTC/USD pair. The next major resistance on the upside is near the $31,000 level. To start another increase, the price must settle above the $31,000 level in the near term.

In the stated case, bitcoin could rise towards the $32,000 resistance or even the 50% Fib retracement level of the downward move from the $40,050 swing high to $25,338 low.

If there is no upside break, the price might start a fresh decline below $30,000. The next key support is near the $28,600 level. Any more losses might call for a test of the $26,500 support zone, where the bulls might take a stand in the near term.

Bitcoin Price

Looking at the chart, bitcoin price is clearly trading above $30,000 and the 55 simple moving average (4-hours). Overall, the price could start a steady increase if there is a move above the $31,000 level.

Technical Indicators

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

4 hours RSI (Relative Strength Index) – The RSI is now above the 50 level.

Key Support Levels – $28,600 and $26,500.

Key Resistance Levels – $30,250, $31,000 and $32,000.

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