Why Bitcoin Might See Extended Downtrend below $30K
- Bitcoin price started another downward wave and traded under the crucial foothold of $30K.
- At this publication, BTC trades beneath $30K and 100-hourly SMA.
- BTC’s one0hour chart shows a critical bearish trend-line emerging with a resistance of $31K.
- The leading crypto can drop beneath the $27.5K and $27K regions in the short term.
Bitcoin could not reclaim value areas beyond the $32K mark. The crypto gains bearish strength as it trades beneath the vital support of $30K.
BTC Drops Beneath Vital Support
Bitcoin price tried to recover beyond the $32K area. Nevertheless, the bellwether crypto could not keep the momentum and kick-started a new drop beneath $31K.
It recorded a decisive move beneath the crucial foothold at $30K and the asset settled beneath the 100-hourly SMA. The bearish wave gained momentum beneath $29.5K. Lastly, Bitcoin dipped beneath $28K to explore new multi-week lows at $27.7K.
Recently, BTC saw a slight upward move beyond $29K. The world’s largest crypto recovered beyond the 23.6% Fibonacci retracement of falls to a $27.7K low from $32,132.
Nevertheless, bears remained active at the resistance level of $30L. The price stayed beneath the 50% Fibonacci retracement zone of the drop from $32,132 to the $27.7K lows. Also, the hourly chart shows a vital bearish life developing with $31K resistance.
Another crucial resistance stands at $31.5K. The vital breakout level remained near $32K, beyond which Bitcoin could launch a stable recovery move in the short term.
More Plummets in Bitcoin?
Bitcoin seems primed for declines and failing to overcome the resistance at $30K might welcome extended declines. The crypto remains vulnerable to declines as the global financial environment deteriorates.
Bitcoin’s support stands at $27.7K. A downward break and closing beneath this foothold might trigger accelerated declines. That would see BTC at the support floor of $27.2K, under which bears could target the footing at $26.5K.
For now, bears dominate the cryptocurrency world. Bitcoin’s downtrend had the alt market suffering. The global crypto market capitalization reflects the downturn in the marketplace. While publishing this blog, the cumulative value of all digital tokens stood at $1.21 trillion, dropping 14% in a day.