Bitcoin Tests Key Support At $30,000

Bitcoin Remains Under Significant Pressure

Bitcoin gained strong downside momentum and managed to get below the psychologically important support level at $30,000 as traders rushed out of riskier assets amid fears about the spread of the Delta variant of coronavirus.

Other cryptocurrencies are also under pressure. Ethereum is currently trying to settle below the $1750 level. Dogecoin is testing the key support at $0.1650 while XRP is trying to get below $0.52.

Some riskier assets, like stocks, look ready to rebound today, but the strength of the U.S. dollar on the foreign exchange market indicates that demand for safe-haven assets remains strong.

I’d note that Bitcoin Dominance, which measures the market capitalization of Bitcoin as a percentage of total crypto market capitalization, has moved higher in recent trading sessions. However, this move failed to provide any support to the world’s leading cryptocurrency as traders moved out of all riskier positions which was bearish for Bitcoin.

Technical Analysis

This is a key moment for Bitcoin bulls as Bitcoin’s move below the $30,000 level may trigger a strong sell-off. RSI remains in the moderate territory despite the recent downside move so there is plenty of room to gain additional downside momentum in case the right catalysts emerge.

If Bitcoin settles below the $30,000 level, it will get to the test of the next support at $28,800. A successful test of this level will push Bitcoin towards the next support at $27,700. In case Bitcoin declines below this level, it will head towards the support at $25,800. A move below $25,800 will push Bitcoin towards the support at $24,000.

On the upside, the nearest resistance level for Bitcoin is located at $32,000. The 20 EMA is located in the nearby so Bitcoin will likely face significant resistance near $32,000. A move above the 20 EMA will open the way to the test of the resistance at $34,000. In case Bitcoin gets above this level, it will head towards the resistance at $35,000.

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