Bitcoin continues its sag motion. Today, the BTC is down practically 7% from the opening price of $32,500, according to Bitstamp. The cryptocurrency failed to close a 4-hour candle above that level the other day and because then, saw only one instructions– down.
As pointed out above, the very first level of support lies at $30,000, which is the base of the bearish triangle pattern, marked on the following everyday chart. On the other side, the first level of resistance lies at $30,760 (support turned resistance).
BTC/USD 4-Hour Chart. Source: TradingViewTitle: Bitcoin Facing Critical Support At $30K, Breakdown Can Lead To $26,000 (Price Analysis).
Sourced From: cryptopotato.com/bitcoin-facing-critical-support-at-30k-breakdown-can-lead-to-26000-price-analysis/.
Released Date: Wed, 27 Jan 2021 10:43:17 +0000.
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BTC/USD Daily Chart. Source: TradingView
Bitstamp BTC/USD 4-Hour Chart
Bitcoin continues its drop motion. Today, the BTC is down nearly 7% from the opening price of $32,500, according to Bitstamp. The cryptocurrency failed to close a 4-hour candle light above that level the other day and ever since, saw just one direction– down.
It eventually plummeted below the short-term rising pattern line we were tracking over the previous few days, which can also be seen as a Head and Shoulders pattern (where the line is acted as the neckline). In this case, the target of the H&S is somewhere in between $28K– $29K.
Regardless, Bitcoin continued its decline, breaking down the next crucial support level at $30,760 (.786 Fib) to strike the existing $30,150 level.
If todays candle closes at existing levels, the break of $30,760 marks completion to the previous rangebound trading area in between $33,000 and $30,760 that Bitcoin was caught inside for the previous six days. However, the day-to-day candle light has nearly 10 hours more to go.
Taking a look at the bigger picture, Bitcoin is now dealing with a vital support mark at $30,000, which forms the base of the coming down triangle pattern that it has actually been consolidating within because taping its all-time high at $42K on January 8 this year. A break below this triangle could potentially see Bitcoin plunging toward $28,000 and even $26,000.
BTC Price Support and Resistance Levels to Watch
Secret Support Levels: $30,000, $29,630, $28,500, $28,000, $26,575.
Key Resistance Levels: $30,700, $32,500, $33,100, $34,000,$ 34,450.
As discussed above, the first level of support lies at $30,000, which is the base of the bearish triangle pattern, marked on the following everyday chart. This is followed by $29,630 (.5 Fib), $28,500 (downside 1.414 Fib Extension), $28,000, and $26,575 (.618 Fib). Further down lies $26,000.
On the other side, the first level of resistance lies at $30,760 (assistance turned resistance). This is followed by $32,000, $32,500, and $33,100 (bearish.382 Fib). Significant resistance is also found at $34,000 and $34,450 (bearish.5 Fib & upper angle of the coming down triangle).
The everyday RSI has turned bearish, suggesting that the bears remain in control. There is still much space to go down, judging by the momentum indicator.
Bitstamp BTC/USD Daily Chart