Bitcoin Price Plunges Below $29K And It's Vulnerable To More Losses

Bitcoin price failed to clear $30,250 and declined sharply. BTC traded below $29,000 and might extend its decline toward $28,000.

  • Bitcoin started another decline below the $29,500 support zone.
  • The price is trading below $29,200 and the 100 hourly Simple moving average.
  • There is a key bearish trend line forming with resistance near $29,050 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could continue to move down unless it settles above the $29,500 pivot level.

Bitcoin Price Dives Over 5%

Bitcoin price struggled to gain bullish momentum above the $30,250 resistance zone. BTC started a fresh decline below the $30,000 and $29,500 support levels, dragging Ethereum below $2,000.

The price broke the $29,000 support zone and tested $28,500. A low is formed near $28,577 and the price is now consolidating losses. Bitcoin price is now trading below $29,200 and the 100 hourly Simple moving average. It is currently testing the 23.6% Fib retracement level of the recent decline from the $30,461 high to the $28,577 low.

There is also a key bearish trend line forming with resistance near $29,050 on the hourly chart of the BTC/USD pair. Therefore, immediate resistance is near the $29,050 level.

Source: BTCUSD on TradingView.com

The first major resistance is forming near the $29,250 level. The next major resistance is near the $29,500 zone. It is close to the 50% Fib retracement level of the recent decline from the $30,461 high to the $28,577 low. A move above the $29,500 resistance might call for a decent increase. In the stated case, the price may perhaps revisit the $30,000 zone. Any more gains could open the doors for a test of $30,500.

More Losses in BTC?

If Bitcoin’s price fails to clear the $29,500 resistance, it could continue to move down. Immediate support on the downside is near the $28,700 level.

The next major support is near the $28,500 zone. A downside break and close below the $28,500 support might push the price toward the $28,000 support. Any more losses might push Bitcoin toward $27,400.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

Major Support Levels – $28,500, followed by $28,000.

Major Resistance Levels – $29,250, $29,500, and $30,000.

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