Key Takeaways:
- Bitcoin price correcting lower and testing the 50-day simple moving average (blue).
- BTC/USD declined below a key rising channel, with support at $30,200 on the daily chart.
- The price must stay above the 100-day SMA to start a fresh rally.
Bitcoin price failed to clear the $31,400 resistance. BTC/USD is sliding at a major turning point near the 100-day SMA.
Bitcoin Price Corrects Lower
After a strong increase, Bitcoin price struggled to settle above the $31,400 resistance level. The BTC/USD made a few attempts and even spiked toward $31,850.
However, the bulls failed to keep the price above the $31,400 resistance. A high was around $31,845, and the price started a downside correction. The price declined below the $31,000 and $30,500 levels.
There was a clear move below the 23.6% Fib retracement level of the main increase from the $24,838 swing low to the $31,845 high.
Besides, Bitcoin declined below a key rising channel with support at $30,200 on the daily chart. The price tests major support at the 50-day simple moving average (blue). The Bulls seem to be defending more losses and a close below the 50-day SMA.
If they fail to protect a daily close below the 50-day SMA, there is a risk of a sharp decline. The next key support is nearly $28,350. It is close to the 50% Fib retracement level of the main increase from the $24,838 swing low to the $31,845 high.
The main uptrend support could be considered near $27,500. A close below the $27,500 support might spark a move toward the $25,000 support zone.
Another Rally?
There could be a fresh increase if Bitcoin stays above the $28,800 support. Immediate resistance is near the $30,000 level. The next key resistance is near the $31,400 zone. A successful daily close above the $31,400 resistance could initiate strong bullish moves.
The price could drift toward the $32,500 level in the stated case. Any more gains might push the price toward the $34,000 resistance zone.
Bitcoin price is correcting gains and testing the 50-day simple moving average (blue). A close below the 50-day SMA might signal a short-term trend change to bearish. Conversely, the price might start a fresh move toward the $31,400 resistance zone.
