By Alicia Maher
The flagship digital currency begins the week with a new price rise. Bitcoin pulls out of the $28,500 support against the USD. BTC is expected to rally if another move bigger than $30,600 occurs.
Following the market’s collapse, Bitcoin has declined over the past couple of weeks. The fall of the Terra network was the trigger for the entire market turmoil.
More importantly, as the largest digital token, Bitcoin seems to be the reason for the market’s underperformance. The equity market also follows a similar pattern to Bitcoin’s market performance.
Bitcoin has tanked and recovered slightly before the recent market storm. The market went into correction after the meltdown of the Terra ecosystem. LUNA and the Terra stablecoin, UST, lost a massive part of their value in the market.
As a result, the entire market was red over the past week.
A Possible Rally on the Horizon
The price of Bitcoin is still above the support zone of $28,500. A bottom pattern has been created over the $28,500 mark. This may have occurred before the new increase.
Bitcoin value found a clear price direction above the resistance zone of $29,500. Even the 100-hourly simple moving average (SMA) follows the same pattern. The price further climbed upward above the $30,000 resistance level.
However, the bears are hovering around the $30,600 resistance point.
Furthermore, the Bitcoin price has been trading above $30,500 and is presently under correction. BTC’s found a move close to the 23.6% Fib retracement level. This price move began at the $29,225 low swing and ended at the $30,500 high swing.
At the bottom, a bullish move is forming close to the $29,800 support zone. The BTC/USD pair shows a close similarity in price movement. Therefore, the price of BTC is currently trading at the $30,000 price level and the 100-hourly SMA.
Meanwhile, the closest resistance will be at the $30,450 support zone. The next immediate resistance is set close to the $30,600 price mark.
Moreover, if another clear move upward occurs at the $30,450 and $30,600 levels, this movement will trigger a strong price rally in the near term. As a result, the next resistance can be found near the $31,500 price mark. Any price rise could peak at $32,500.
Can Bitcoin Decline Further?
As the price changes, BTC might be able to move upward depending on the market direction if BTC fails to move past the $30,600 resistance zone. Another decline is expected with new support near the $30,000 level. Bitcoin will form major support near the trend line at $29,850.
Furthermore, the trend line sits near the 50% Fib retracement level, where an upward or downward swing can occur. Another clear move under the trend line may push the price close to the $28,500 support zone.
Bitcoin’s price action needs a strong performance to maintain its value. The recent market storm has created a gap in value among most cryptocurrencies. In the meantime, the BTC has failed to make a robust comeback in the market.