Key Takeaways:
- Bitcoin price trimmed the gains led by XRP’s legal win.
- BTC/USD is following a rising channel with support near $30,200 on the 4-hour chart.
- The price could start another increase unless there is a close below $30,000.
NEW DELHI (CoinChapter.com) — Bitcoin (BTC) price dropped from the $31,850 zone to retest its long-serving support level near $30,000.
Bitcoin Price Revisits Key Support
This past week, Bitcoin’s price steadily increased above the $30,500 resistance zone. The BTC/USD pair increased and surpassed the $31,200 pivot zone.
It jumped over 7% and even surpassed the $31,500 resistance. However, it failed to test the $32,000 resistance. A high was formed near $31,845, with a nasty decline. BTC trimmed most gains and retested the key support at $30,000.
A low is formed near $29,929, and the price consolidates losses. It is trading well below the 50 simple moving average (4 hours; blue) and testing the 23.6% Fib retracement level of the downward move from the $31,845 swing high to the $29,929 low.
Bitcoin trades inside a rising channel with support near $30,200 on the 4-hour chart. On the downside, the first major support is near the $30,200 level. The next key support sits near the $30,000 zone.
If there is a downside break below the channel trend line and then $30,000, there is a risk of a move toward the $29,200 support.
A close below the $29,200 support could initiate a major decline. The price could decline toward the $28,350 support in the stated case. Any more losses might lead the price toward $27,500.
More Downsides?
Conversely, Bitcoin could start a fresh increase from $30,200. Immediate resistance is near the $30,500 level and the 50 simple moving average (4 hours, blue). The first major resistance is now forming near the $30,880 level or the 50% Fib retracement level of the downward move from the $31,845 swing high to the $29,929 low.
A close above the $30,880 level might send the price toward the next resistance at $31,400. If the bulls clear the $31,400 hurdle, there could be a steady increase toward the $32,000 resistance. Any more gain may perhaps send Bitcoin toward the $33,500 resistance.
Overall, the Bitcoin price was rejected above $31,500. If the bulls remain active, there could be a fresh increase toward the $32,000 resistance. Conversely, the price might decline further toward the $28,350 support.
