September 30, 2022

Bitcoin Price Analysis: BTC Broke to the Downside, Is Another $30K Retest Incoming?

2 min read

BTC lost 6% of its value today as it failed the lower angle of a short-term symmetrical triangle pattern.

As mentioned here the other day, a substantial rate move was anticipated due to the reducing quantities of trading volume, along with reaching the peak of an in proportion triangle.

Certainly, the move came, and the bearish breakout saw BTC dropping almost $3000 since the other day’s high, around $35K. Today’s level set a fresh low for July 2021, and it is also the most affordable rate bitcoin has actually seen considering that June 27th.

Before the breakdown, BTC was combining inside the short-term triangle pattern – – amid the 20-day moving typical line for the past days (blue line as revealed on the following day-to-day chart). However, bitcoin’s rate failed to preserve above it, which caused the sharp dump today.

Following the breakdown, BTC is now below the rising pattern line that has supported the marketplace because June 22nd. It can be dealing with more short-term bearish action, as the long-term resistance pattern line on the everyday RSI got rejected as soon as again, preventing the property from developing the very first lower-high since February 2021.

With today’s drop, all eyes now rest on the support at $31,500, where BTC double-bottomed in the last week of June and was able to reclaim $36.6 K soon after.

Even more listed below lies the significant support around the $30K mark, which has successfully protected the cryptocurrency 6 times because May. As a suggestion, bitcoin has traded in between $30K and $42K because the liquidation crash on May 19th. A breakout from this range must result in BTC’s next major move.

BTC Price Support and Resistance Levels to Watch

Secret Support Levels: $32,270, $31,500, $31,185, $30,600, $30,000.

Secret Resistance Levels: $32,700, $33,520, $34,000, $35,000, $35,900.

Looking ahead, the first assistance lies at $32,270 (today’s low). This is followed by $31,500 (double-bottom support from June), $31,185, $30,600 (downside 1.618 Fib Extension), and $30,000.

On the other side, the first resistance now stands at $32,700 (early July support, which now relied on resistance). This is followed by $33,520, $34,000 (20-day MA), $35,000, and $35,900 (50-day MA).

The day-to-day RSI is trending lower, showing increasing bearish momentum within the marketplace in the short-term. The 4-hour RSI likewise made a brand-new low in July. It broke beneath the 40 level as the bears retake control while the trading volume has actually been increasing lately (but still really low compared to May 2021).

Bitstamp BTC/USD Daily Chart

BTC/USD Daily Chart. Source: TradingView. Bitstamp BTC/USD 4-Hour Chart BTC/USD 4-Hour Chart. Source: TradingView.