Bitcoin (BTC) price has been increasing since August 1st. The price broke out after making a higher low on August 7 and reached $30,000 the next day.
Despite the rise, a positive reaction to the $30,000 area is still needed for the trend direction to be confirmed bullish.
Bitcoin (BTC) price finally hits $30,000
BTC price has been falling since hitting a high of $38,104 on July 15. The decline was contained in a descending parallel channel and culminated in a low of $28,585 on Aug. 1. Despite the decline, BTC price remained above the $28,800 horizontal support area. You have to validate it several times (green icons). The jumps resulted in long lower wicks, which is seen as a sign of buying pressure. This is particularly evident in the wick of August 7th.
The price has increased since then. It broke out of the parallel channel on August 7 and surged above $30,000 the next day. BTC has not experienced a retracement since its breakout.
However, despite the surge and breakout, BTC is still trading below the horizontal $30,000 area. This is a crucial level as it has acted as support since July 24th and has now turned into resistance.
BTC price needs to recover to confirm that the correction that started on July 15 is over. The $30,000 area would support the upside move that follows in this case.
BTC/USD 6 hour chart. Source: TradingView
In this case, the next resistance lies at $30,560 and it is created by the 0.618 Fibonacci retracement resistance level. This would represent an increase of 2.10% over the current price.
Since the 0.618 Fibonacci level often acts as the corrective high or low of the move, a rise above it would indicate the trend is bullish. On the other hand, a rejection would result in a decline at the $28,800 support area. This would correspond to a decline of 3.50%.
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Disclaimer
In accordance with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, however, market conditions are subject to change without notice. Always do your own research and consult a professional before making any financial decisions.
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