Bitcoin price falls below $29,000 and is vulnerable to more losses

Bitcoin price failed to clear $30,250 and declined sharply. BTC traded below $29,000 and could extend its decline towards $28,000.

• Bitcoin started another decline below the $29,500 support zone.
• The price is trading below $29,200 and the 100 hourly simple moving average.
• There is a key bearish trend line forming with resistance near $29,050 on the hourly chart of the BTC/USD pair (data feed by Kraken).
• The pair could continue lower if it fails to settle above the $29,500 pivot level.

Bitcoin Price Plunges Over 5%

Bitcoin price struggled to gain bullish momentum above the $30,250 resistance zone. BTC started a fresh decline below the $30,000 and $29,500 support levels, dragging Ethereum below $2,000.

The price broke the $29,000 support zone and tested $28,500. A low is forming near $28,577 and the price is now consolidating its losses. Bitcoin price is now trading below $29,200 and the 100 hourly simple moving average. It is currently testing the 23.6% Fib retracement level of the recent decline from the $30,461 high to $28,577 low.

There is also a key bearish trend line forming with resistance near $29,050 on the hourly chart of the BTC/USD pair. Therefore, the immediate resistance is near the $29,050 level.

Source: BTCUSD on TradingView.com

The first major resistance is forming near $29,250. The next major resistance is near the $29,500 zone. It is close to the 50% Fib retracement level of the recent decline from the $30,461 high to $28,577 low. A move above the $29,500 resistance might require a decent climb. In the case mentioned, the price could perhaps reach the $30,000 zone again. Further gains could open the doors for a test of $30,500.

More losses on BTC?

If bitcoin price fails to clear the $29,500 resistance, it could continue lower. Immediate support on the downside is near $28,700.

The next major support is near the $28,500 zone. A downside break and a close below the $28,500 support could push the price towards the $28,000 support. Further losses could propel Bitcoin towards $27,400.

Technical indicators:

Hourly MACD – The MACD is now picking up pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

Key support levels – $28,500 followed by $28,000.

Major resistance levels – $29,250, $29,500 and $30,000.

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