Key Takeaways:
- Bitcoin price is holding gains above the $29,800 support zone.
- BTC/USD is trading inside a declining channel with resistance near $31,050 on the 4-hour chart.
- The price might start a new rally if a daily close exceeds $31,200.
YEREVAN (CoinChapter.com) — Bitcoin price traded in a range above the $29,800 support. BTC/USD is neglecting FUD and might start a new rally above the $31,500 resistance.
Bitcoin Price Remains Stable
This past week, Bitcoin price started a minor downside correction from the $31,400 resistance zone. The BTC/USD pair corrected gains below the $31,000 and $30,500 levels.
The price even spiked below $30,000 after SEC said BTC ETF Filings were “Inadequate.” However, the bulls were active near the $29,800 support zone. The price stayed above the 23.6% Fib retracement level of the main increase from the $24,824 swing low to the $31,420 high.
The price started a new increase above the $30,300 level. It is now above the $30,500 level and the 50 simple moving average (4 hours, blue).
The price trades inside a declining channel with resistance near $31,050 on the 4-hour chart. Bitcoin could attempt a new rally if it remains stable above the $30,450 level. Immediate resistance is near the $31,000 level and the channel zone.
The first major resistance is now forming near the $31,400 level. A close above the $31,400 level might increase the price toward $32,500.
The next major resistance is near the $32,500 level, above which the price could rise toward the $33,500 resistance. Any more gain may perhaps send Bitcoin toward the $34,000 resistance.
Another Drop?
If Bitcoin fails to settle above the channel resistance, another downside correction could start. On the downside, the first major support is near the $30,400 level or the 50 simple moving average (4 hours, blue). The next key support sits near the $29,800 level.
If there is a downside break below $29,800 and the channel lower trend line, there is a risk of a move toward the $28,150 support. It is close to the 50% Fib retracement level of the main increase from the $24,824 swing low to the $31,420 high.
A close below the $28,000 support could send the price toward the $27,350 support. Any more losses might lead the price toward the $25,200 support soon.
Bitcoin’s price is still trading in a bullish zone above the $29,800 support. If there is a close above $31,050, there could be a new increase toward the $34,000 resistance. Conversely, the price might correct lower toward the $28,000 support.
