TA: Bitcoin Clears $30K, Why This Could Mean Trend Change

Bitcoin started a fresh increase and surpassed $30,000 against the US Dollar. BTC is showing positive signs and might rally further if it clears $30,600.

Bitcoin is gaining pace above the $29,500 and $30,000 resistance levels.
The price is now trading above the $29,500 level and the 100 hourly simple moving average.
There was a break above a major bearish trend line with resistance near $29,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could rise further if it clears the $30,600 resistance zone.

Bitcoin Price Gains Pace

Bitcoin price formed a fresh base above the key $28,500 support zone. It remained well bid and started a fresh increase above the $29,200 resistance zone.

The price cleared the 50% Fib retracement level of the downward move from the $30,188 swing high to $27,505 low. Besides, there was a break above a major bearish trend line with resistance near $29,200 on the hourly chart of the BTC/USD pair.

The pair is now trading above the $29,500 level and the 100 hourly simple moving average. Bitcoin is also trading above the 76.4% Fib retracement level of the downward move from the $30,188 swing high to $27,505 low.

Source: BTCUSD on TradingView.com

An immediate resistance on the upside is near the $30,250 level. The next major resistance is near the $30,600 level. A clear move above the $30,600 resistance level might call for a trend change. In the stated case, the price could even clear the $31,200 resistance. The next major resistance sits near the $32,500 level.

Fresh Decline in BTC?

If bitcoin fails to clear the $30,600 resistance zone, it could start a downside correction. An immediate support on the downside is near the $30,000 level.

The first major support is near the $29,600 level. The main support is now forming near the $29,300 level and the 100 hourly simple moving average. A downside break below the $29,200 support might send the price further lower. In the stated case, the price may perhaps revisit the $28,500 support zone in the near term.

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 well above the 60 level.

Major Support Levels – $29,500, followed by $28,500.

Major Resistance Levels – $30,250, $30,600 and $32,500.

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