Relatively Subdued Bitcoin Price – What Could Trigger a Sharp Drop?

Bitcoin price is still struggling below the $29,650 zone. BTC could gain downside momentum if the close below the $29,100 support level.

• Bitcoin is showing some bearish signs below the $29,650 zone.
• The price is below $29,400 and the 100 hourly simple moving average.
• There is a short-term uptrend line forming with support near $29,320 on the hourly chart of the BTC/USD pair (data feed by Kraken).
• The pair could continue lower if it breaks the $29,250 and $29,100 support levels.

Bitcoin price stuck below $30,000

Bitcoin price remained well below the $30,000 resistance zone. BTC attempted a short-term move higher, but the bears have been active near the $29,650 resistance zone.

A high formed at $29,657 before returning to $29,250. The price is now consolidating and trading above the 23.6% Fib retracement level of the recent decline from the $29,657 swing high to the $29,250 low.

Bitcoin is currently trading below $29,400 and the 100 hourly simple moving average. There is also a short-term uptrend line forming with support near $29,320 on the hourly chart of the BTC/USD pair.

Immediate resistance is near $29,450. It is close to the 50% Fib retracement level of the recent drop from the $29,657 swing high to the $29,250 low. The next major resistance is at $29,500. The main resistance is currently forming near the $29,650 level.

Source: BTCUSD on TradingView.com

A close above the $29,650 resistance level could propel the price towards the $30,000 resistance area. Further gains could change the trend and the price could surge towards $30,500. In the mentioned case, the price could even increase towards $31,200 or even $32,200 in the coming days.

More BTC losses?

If bitcoin fails to clear the $29,650 resistance, the price could fall further. Immediate support on the downside is near the trendline.

The next major support is near the $29,250 level. The first key support is around $29,100. A downside break below $29,100 could start another steady decline. In the mentioned case, the price could drop towards $28,400.

Technical indicators:

Hourly MACD – The MACD is now picking up pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

Key support levels – $29,250 followed by $29,100.

Major resistance levels – $29,450, $29,650 and $30,000.

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