Bitcoin price is paring gains but resistance has turned into intact support

Bitcoin price started a down correction from $30,200. BTC is now trading near the previous breakout resistance at $29,400.

• Bitcoin corrects gains and trades below $29,800 level.
• The price is above $29,400 and the 100 hourly simple moving average.
• There was a break below a key bullish trend line with support near $29,840 on the hourly chart of the BTC/USD pair (data feed by Kraken).
• The pair could start another climb if it stays above the $29,400 support zone.

Bitcoin price holds support

Bitcoin price started a decent climb above the $29,400 and $29,500 resistance levels. BTC even broke through $30,000, however, there was no daily close. A high was formed at $30,190 and the price started a downward correction.

There was a move below the $30,000 and $29,800 levels. The price broke below the 23.6% Fib retracement level of the bullish move from the swing low of $28,628 to the high of $30,190. Additionally, there was a break below a key uptrend line with support near $29,840 on the hourly chart of the BTC/USD pair.

Bitcoin price is now above $29,400 and the 100 hourly simple moving average. It also holds the key pivot zone at $29,400. It is close to the 50% Fib retracement level of the move up from the swing low of $28,628 to the high of $30,190.

Immediate resistance is near $29,680. The first major resistance is near the $29,800 level. The next major resistance is near the $30,000 level, above which the price could rally back to $30,200.

Source: BTCUSD on TradingView.com

A close above the $30,200 resistance level could trigger another steady rise. In the mentioned case, the price could test $31,200 or even $32,000 in the coming days.

More BTC losses?

If bitcoin fails to clear the $29,800 resistance, a fresh decline could begin. Immediate support on the downside is near $29,400.

The next major support is near $29,300 or the 100 hourly SMA. A downside break below $29,300 could trigger downside moves. In that case, the price could be back to $29,000. Further losses may require a move towards the $28,680 level in the near term.

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 – $29,400 followed by $29,300.

Major resistance levels – $29,800, $30,000 and $30,200.

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