- Bitcoin price rallied above the $30,000 resistance zone.
- BTC/USD is trading above a major bullish trend line with support near $29,200 on the 4-hour chart.
- The price might correct in the short term, but dips could be attractive near $29,000.
Bitcoin price gained over 15% and traded above $30,000. BTC/USD is signaling a downside correction toward the $29,200 and $29,000 support levels.
Bitcoin Price Defies Gravity
This past week, Bitcoin price started a strong increase above the $28,000 resistance zone. The BTC/USD pair gained pace and was able to surpass the $29,200 pivot zone.
It jumped over 15% and even surpassed the $30,000 resistance. A new multi-week high is formed near $31,419 and the price is now consolidating gains. There was a minor pullback below the $31,000 and $30,800 levels.
Bitcoin price 4-hour chart | Source: BTCUSD on TradingView.com
The price is now trading well above the 50 simple moving average (4 hours, blue) and the 23.6% Fib retracement level of the recent rally from the $24,825 swing low to the $31,419 high.
Bitcoin is also trading above a major bullish trend line with support near $29,200 on the 4-hour chart. On the downside, the first major support is near the $29,800 level. The next key support sits near the $29,200 level or the trend line or the 50 simple moving average (4 hours, blue).
If there is a downside break below the trend line, there is a risk of a move toward the $28,000 support. It is close to the 50% Fib retracement level of the recent rally from the $24,825 swing low to the $31,419 high.
A close below the $28,000 support could initiate a major decline. In the stated case, there is a risk of a drop toward the $27,350 support. Any more losses might lead the price toward the $25,200 support in the near term.
Dips Could be Limited
Conversely, Bitcoin could start a fresh increase from $29,800. Immediate resistance is near the $31,000 level. The first major resistance is now forming near the $31,400 level.
A close above the $31,400 level might send the price toward the next resistance at $32,500. If the bulls manage to clear the $32,500 hurdle, there could be a steady increase toward the $33,500 resistance. Any more gain may perhaps send Bitcoin toward the $34,000 resistance.
Overall, Bitcoin price is trading in a bullish zone above the $29,200 support. If the bulls remain active, there could be a fresh increase toward the $32,500 resistance. Conversely, the price might correct lower toward the $28,000 support.
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