Key Takeaways:
- Bitcoin’s price is consolidating above the $29,500 support level, with a significant resistance at $30,400.
- Recent attempts to break above the resistance were met with downside reactions, but the $29,500 support remains intact.
- Critical resistance levels to watch are $30,000, $30,100 (61.8% Fib retracement), and the key level at $30,400.
The price of Bitcoin is continuing its consolidation phase above the $29,500 support level, while market participants closely monitor the critical $30,400 resistance zone. Recent attempts to breach this resistance resulted in downside reactions, but the $29,500 support level has held firm, indicating market resilience.
In a detailed analysis of Bitcoin’s recent price movements, the cryptocurrency experienced a break below the bullish trend line with support near $29,950. However, the limited downside movement kept the price above the crucial $29,500 support. The recent low formed near $29,591, followed by an attempt to initiate a fresh increase above the $29,650 level.
As of now, Bitcoin is trading below $30,000 and the 100 hourly Simple Moving Average (SMA), signifying the importance of overcoming these initial hurdles. This is in contrast to our previous analysis. At that time, Bitcoin price had rebounded from the 20-day EMA but faced a crucial resistance zone between $31,000 and $31,500.
Currently, the immediate resistance levels to watch are $30,000 and the 100 hourly SMA. Additionally, the key resistance at $30,100 aligns with the 61.8% Fibonacci retracement level.
The critical barrier for Bitcoin remains at $30,400, and a close above this level could trigger a fresh increase, potentially leading to gains toward the $30,800 and $31,200 resistance zones. However, if Bitcoin fails to clear the $30,000 resistance, there is a possibility of further downside movement.
In case of a downward trend, immediate support is at $29,600, while the major support zone lies at $29,500. A break below $29,500 could accelerate the decline, potentially leading to a test of the $29,200 support zone.
So, in essence, Bitcoin’s price is currently consolidating above the $29,500 support level, with a critical resistance at $30,400. The recent attempts to breach this resistance and its subsequent reaction to the downside indicate the significance of this level.
Right now, market participants are closely watching the price action for further developments, as the outcome may shape Bitcoin’s short-term trajectory. Let’s see what follows
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