Bitcoin began a new rise against the US Dollar from the $28,500 support level. If there is a clear move above the $30,600 resistance zone then we have clear picture of why bitcoin could soar above $30K.
Bitcoin rose further after forming a double bottom pattern near $28,500.
The price has risen above $30,000 and the 100 hourly simple moving average.
On the hourly chart of the BTC/USD pair, a key bullish trend line is forming with support near $29,800. (data feed from Kraken).
If there is a decisive rise above $30,600, the pair might develop positive momentum.
Why Bitcoin could soar above $30K
The price of bitcoin remained well above the $28,500 support level. Above $28,500, it appears that a double bottom pattern occurred before the price began to rise again.
The price broke through the $29,500 resistance level and the 100 hourly simple moving average. The price even broke through the $30,000 barrier. Bears are still active near the $30,600 resistance zone, however.
The price has just corrected lower after reaching a high of $30,500. The upward rise from the $29,225 swing low to $30,500 high was retraced at a 23.6 percent Fib retracement level.
On the hourly chart of the BTC/USD pair, a crucial bullish trend line is forming with support near $29,800 on the downside. It’s currently trading above $30,000 and the 100 hourly simple moving average. Near the $30,450 level, there is instant resistance. The next significant resistance level is at $30,600.
In the short term, a clear move above the $30,450 and $30,600 resistance levels might kickstart a major surge, which is why bitcoin could soar above $30.6K. The next major resistance level might be at $31,500, after which the price could surge to $32,500.
BTC Price Dropping?
If bitcoin fails to break over the $30,600 barrier zone, it may resume its downward trend. Near the $30,000 level, there is immediate support on the downside. The trend line and the $29,850 level provide the first big support for Bitcoin to soar above 30K.
The trend line is approaching the 50% Fib retracement level of the upward move from the swing low of $29,225 to the high of $30,500. A break below the trend line might push the price down to the $28,500 support level.
Hourly MACD – The MACD has started to lose steam in the bullish zone.
RSI (Relative Strength Index) hourly – The RSI for Bitcoin/USD is now over 50.
$29,850 is the highest level of support, followed by $29,600.
$30,600, $31,200, and $31,500 are the major resistance levels.