Bitcoin price started a downside correction from the $31,000 zone.
BTC/USD is holding a crucial bullish trend line with support near $28,800 on the 4-hour chart.
The price might start a fresh rally if it stays above the $28,500 support region.
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NEW DELHI (CoinChapter.com) — Bitcoin price is correcting gains below $30,000. BTC/USD holds key uptrend support and might start a new rally above $30,000.
Bitcoin Price Remains In Uptrend
This past week, we discussed the chances of a new increase in Bitcoin price if it closes above $28,500. As a result, the BTC/USD pair steadily increased and cleared the $30,500 resistance.
The price traded close to the $31,000 level. A new multi-week high was formed near $30,968, and recently, the price saw a downside correction. BTC declined below the $30,000 support and the 50 simple moving average (4 hours, blue).
Bitcoin price 4-hour chart | Source: BTCUSD on TradingView.com
The price spiked below the 23.6% Fib retracement level of the main increase from the $27,780 swing low to the $30,968 high. However, the bulls are currently active above the $29,250 support zone.
It also holds a crucial bullish trend line with support near $28,800 on the 4-hour chart. The trend line coincides with the 61.8% Fib retracement level of the main increase from the $27,780 swing low to the $30,968 high.
On the upside, immediate resistance is near the $30,000 level and the 50 simple moving average (4 hours, blue). In addition, a connecting bearish trend line is forming with resistance near $30,050 on the same chart.
The main breakout zone is forming near the $30,460 level. A close above the $30,460 level might start another rally. The next major resistance might be near the $32,000 level, above which the bulls may perhaps aim a move toward the $32,800 resistance.
If there is no move above $30,000 and $30,050, Bitcoin price might extend its decline. On the downside, the first major support is near the $29,000 level and the trend line.
The next key support sits near the $28,500 level. A close below the $28,500 support could initiate a large degree correction. In the stated case, there is a risk of a drop toward the $26,500 support.
Overall, Bitcoin price is holding gains above the $29,000 and $28,500 levels. If BTC breaks the $30,000 resistance, it could rally again. Conversely, it may perhaps decline toward the $28,500 support.
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