Key Takeaways:
- Bitcoin price is consolidating gains above the $29,800 support and the 50-day simple moving average (blue).
- BTC/USD is following a potential bullish flag pattern with resistance near $31,000 on the daily chart.
- The price could start a fresh increase unless there is a daily close below $29,800.
Bitcoin Price Prediction | Photo by Karolina Grabowska
Bitcoin price is struggling to continue higher above $31,000. BTC/USD is sitting at crucial support at $29,800, below which there could be a sharp decline.
Bitcoin Price Starts Consolidation
After a strong increase, Bitcoin price struggled to gain strength above the $31,000 level. The BTC/USD pair traded as high as $31,419 before there was a minor pullback.
The price corrected a few points below the $30,800 and $30,500 levels. There were a couple of spikes below the $30,000 level but the price stayed well above the 50-day simple moving average (blue). The price also stayed above the 23.6% Fib retracement level of the key move from the $24,825 swing low to the $31,419 high.
Bitcoin price daily chart | Source: BTCUSD on TradingView.com
The price is now consolidating above the $29,800 support zone. It is also following a potential bullish flag pattern with resistance near $31,000 on the daily chart.
If Bitcoin fails to stay above the $29,800 support zone, there is a risk of a larger decline. The next major support is near the $29,200 level. Any more losses could send the price toward the $28,000 support region.
It is close to the 50% Fib retracement level of the key move from the $24,825 swing low to the $31,419 high. If the bulls fail to keep the price above $28,000, there could be a drop toward the next major uptrend support at $27,350.
Another Rally?
If Bitcoin stays above the $29,800 support, there could be another attempt to clear the $31,000 resistance zone. The next key resistance is near the $31,400 zone.
If there is a clear move above the channel resistance and then the recent swing high, the price could rise toward the $32,800 resistance. Any more gains might even push the price toward the $34,000 resistance zone.
Overall, Bitcoin price is showing consolidation signs and trading well above the 50-day simple moving average (blue). A close above the channel resistance and $31,400 could start a steady increase toward the $34,000 resistance. Conversely, the price might nosedive toward the $28,000 support level in the near term.
