Bitcoin recently extended its decline, trading below $29,000** against the US Dollar. For BTC to avoid a sharp drop in the near term, it must maintain support above the **$28,500 level.
Key Developments in Bitcoin's Price Movement
- Resistance Rejection: Bitcoin faced rejection near the $30,500 resistance zone, triggering a fresh decline.
- Current Trading Position: The price is now below $30,000 and the 100-hour Simple Moving Average (SMA), indicating bearish pressure.
- Trend Line Break: A bullish trend line with support near $29,600 was broken on the hourly BTC/USD chart (Kraken data feed).
- Critical Support Zone: A clear drop below $28,500 could accelerate losses.
Bearish Signals for Bitcoin
Price Action Analysis
- Failed Breakout: BTC attempted to recover but couldn't sustain momentum above $30,500.
- Support Breakdown: The price fell below $29,500** and **$29,000, confirming downward pressure.
- Consolidation Phase: After testing $28,500**, Bitcoin is now consolidating near **$28,800.
Key Resistance Levels
- Immediate Resistance: $29,100 (23.6% Fibonacci retracement of the recent drop).
- Major Resistance: $29,650** (50% Fib level). A breakout here could signal recovery toward **$30,500.
- Strongest Hurdle: $30,500**, beyond which BTC may target **$31,200.
Downside Risks
- Critical Support: $28,500**—a break below this may trigger a steeper decline toward **$27,500.
- Short-Term Support: $28,800 could act as a minor bounce zone.
Technical Indicators
- MACD: Losing momentum in the bearish zone.
- RSI: Below 50, indicating weakening buying pressure.
👉 Bitcoin’s Next Major Move: Key Levels to Watch
FAQs
1. Why is Bitcoin declining?
Bitcoin faced rejection at $30,500**, leading to a breakdown below key support levels (**$29,500, $29,000). Increased selling pressure and bearish technical indicators contributed to the drop.
2. What’s the next critical support for BTC?
$28,500** is the make-or-break level. If broken, BTC could slide toward **$27,500.
3. Can Bitcoin recover soon?
A breakout above $29,650** could signal recovery, with **$30,500 as the next target. However, failure to hold $28,500 may deepen losses.
👉 Understanding Bitcoin Market Trends
Conclusion
Bitcoin’s near-term trend depends on whether it holds $28,500** or breaks above **$29,650. Traders should monitor these levels closely for directional cues.
Major Support Levels: $28,800**, then **$28,500.
Major Resistance Levels: $29,650**, **$30,000, and $30,500.