• Bitcoin price failed to clear the $31,400 resistance and is currently correcting lower.
• The bulls need to hold the 100-day SMA in order to start a fresh rally.
• A successful daily close above the $31,400 could initiate a move towards $34,000 level.
Bitcoin Price at Major Turning Point
Bitcoin price failed to clear the $31,400 resistance. BTC/USD is sliding at a major turning point near the 100-day SMA and needs support from the bulls to start a fresh rally.
Decline Below Rising Channel
After a strong increase, Bitcoin price struggled to settle above the $31,400 resistance level. The BTC/USD made several attempts but ultimately declined below a key rising channel with support at $30,200 on the daily chart. The price has been testing major support at the 50-day simple moving average (blue).
Key Support Levels
If bulls fail to protect Bitcoin from closing below the 50-day SMA, there is risk of sharp decline with next key support levels being nearly around $28,350 near 50% Fib retracement level of main increase from swing low to high. Additionally, main uptrend support could be considered near $27,500 if it closes below this level then it might spark decline towards $25K zone.
Fresh Increase Possible?
A fresh increase can be expected if Bitcoin stays above $28800 as immediate resistance lies around 30K zone and next key resistance lies around 31K zone if it manages close above this level then it may initiate strong bullish moves and drift towards 32K level as well as 34K resistance zone.
Conclusion
Bitcoin price is currently correcting gains and testing the 50-day simple moving average (blue). A close below this mark might signal a short-term trend change to bearish whereas conversely if bulls manage good hold then it may initiate fresh move towards 31K zone or higher levels eventually increasing chances of further upside movements in future course of time.