TA: Bitcoin Price Breaks $29K, Why BTC Is Likely To Hit $30K

Bitcoin price extended its upward move and traded to a new all-time high near $29,250 against the US Dollar. BTC is likely to continue higher towards the $30,000 level.

• Bitcoin is gaining bullish momentum above $28,400 and it broke the $29,000 level.
• The price traded as high as $29,274 and settled well above the 100 hourly simple moving average.
• There is a major breakout pattern forming with support near $28,650 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair is likely to continue higher above $29,000 unless there is a clear break below $28,300.

Bitcoin Price Breaks $29,000

There was a steady increase in bitcoin price above the main $28,300 resistance zone. BTC broke the $28,500 and $29,000 levels to continue higher. It even spiked above USD 29,200 and traded to a new all-time high at $29,274.

Recently, there was a sharp downside correction below the $29,000 level, but it is still well above the 100 hourly simple moving average. The price also spiked below the 23.6% Fib retracement level of the upward move from the $27,375 swing low to $29,274 high.

Source: BTCUSD on TradingView.com

Bitcoin price tested the $28,325 support zone. It also remained well bid above the 50% Fib retracement level of the upward move from the $27,375 swing low to $29,274 high. Moreover, there is a major breakout pattern forming with support near $28,650 on the hourly chart of the BTC/USD pair.

On the upside, the price is facing hurdles near $29,200. A clear break above the $29,200 and the recent high could open the doors for more upsides above $29,500. The main aim for the bulls could be $30,000 in the near term.

Dips Supported in BTC?

If bitcoin starts another downside correction, it is likely to find support near the $28,650 zone and the triangle lower trend line.

The next major support is near the $28,300 zone (a multi-touch zone) and a key level. If there are more downsides below $28,300, there is a risk of a larger decline. In the stated case, the price could test $27,500 or even the 100 hourly SMA.

Technical indicators:

Hourly MACD – The MACD is losing momentum in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is correcting lower from the 70 level.

Major Support Levels – $28,650, followed by $28,300.

Major Resistance Levels – $29,000, $29,200 and $30,000.

by Aayush Jindal on December 31, 2020 at 09:18AM