Bitcoin corrected lower and tested the $29,000 support against the US Dollar. BTC must settle above the $30,500 resistance to start a decent increase.

Bitcoin price started a downside correction from the $31,500 zone. BTC traded below the $30,000 support zone and the 100 hourly simple moving average.

There was a move below the $29,500 level, but the bulls were active near the $29,000 zone. A low is formed near $29,060 and the price is now recovering losses. There was a clear move above the $29,500 level. The price cleared the 23.6% Fib retracement level of the recent decline from the $31,390 swing high to $29,060 low.

Bitcoin is now trading above the $30,000 level and the 100 hourly simple moving average. There was a break above a connecting bearish trend line with resistance near $29,600 on the hourly chart of the BTC/USD pair.

An immediate resistance is near the $30,300 level. It is near the 50% Fib retracement level of the recent decline from the $31,390 swing high to $29,060 low. A successful close above the $30,300 level could open the doors for a decent increase.

The next major resistance is near the $31,400 level. A clear move above the $30,300 and $31,400 resistance levels might start a fresh increase in the coming sessions. The next key resistance could be near the $32,500 level, above which the price might rise towards $34,000.

If bitcoin fails to gain pace above the $31,400 resistance zone, it could start a fresh decline. An immediate support on the downside is near the $29,600 level.

The first major support is near the $29,000 level. A downside break and close below the $29,000 support might start a major decline. In the stated case, the price could decline towards the $89,000 level.

Technical indicators:

Hourly MACD – The MACD is now slowly gaining pace in the bullish zone.

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

Major Support Levels – $29,600, followed by $29,000.

Major Resistance Levels – $30,500, $31,400 and $32,500.

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