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TA: Bitcoin Forms Bullish Pattern, Why Break Above $31.5K Is The Key

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Bitcoin remained strong above the $29,500 support against the US Dollar. BTC could start a major increase if there is a clear move above the $31,500 resistance.

  • Bitcoin started a fresh increase from the $29,500 support zone.
  • The price is now trading above the $30,000 level and the 100 hourly simple moving average.
  • There is a key bearish trend line forming with resistance near $31,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could start a major upward move if there is a clear move above the $31,500 resistance.

Bitcoin Price Reverses Losses

Bitcoin price remained well bid above the $29,200 and $29,500 levels. A low was formed near $29,200 and the price started a fresh increase. There was a clear move above the $30,000 resistance zone.

The bulls were able to pump the price above the $30,500 level and the 100 hourly simple moving average. It even surged above the $31,000 level and even tested the $31,500 resistance zone. A high is formed near $31,550 and the price is now consolidating gains.

It already tested the 23.6% Fib retracement level of the recent increase from the $29,200 swing low to $31,550 high. An immediate resistance on the upside is near the $31,400 level.

There is also a key bearish trend line forming with resistance near $31,400 on the hourly chart of the BTC/USD pair. The first major resistance is near the $31,500 level. A clear move above the $31,500 resistance level could send the price further higher.

Bitcoin Price

Source: BTCUSD on TradingView.com

The next major resistance might be $32,200. Any more gains might change the bias and bitcoin price could rise towards the $33,200 level.

Fresh Decline in BTC?

If bitcoin fails to clear the $31,500 resistance zone, it could start another decline. An immediate support on the downside is near the $30,850 level.

The next major support is near the $30,175 level. It is near the 50% Fib retracement level of the recent increase from the $29,200 swing low to $31,550 high. A downside break below the $30,175 support may perhaps spark another decline. In the stated case, the price could dive towards the $29,500 support zone in the near term.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bullish zone.

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

Major Support Levels – $30,850, followed by $30,175.

Major Resistance Levels – $31,400, $31,500 and $32,200.

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