Yooo did Bitcoin (BTC/USD) just drop below the $30,000 mark again?
As you can see, BTC is now trading closer to the $29,000 levels after briefly flirting with (and getting rejected at) the $31,000 zone.
This comes after the dollar regained some of its losses from the previous week while other non-BTC “risk” assets found buyers.
Luckily, it looks like there’s enough demand around BTC/USD’s current prices.
Bitcoin (BTC/USD) 4-hour Chart by TradingView
And why not? Note that $29,000 lines up with a key resistance zone from late March.
This time around, $29,000 is also around a descending channel support AND the 100 and 200 SMAs on the 4-hour time frame.
The cherry on top for the bulls is Stochastic signaling BTC/USD’s “oversold” levels.
Are we looking at a good place to jump in BTC’s uptrend?
A long trade at current levels would yield a good risk ratio especially if BTC/USD revisits its April highs near $31,000.
Don’t discount lower intraweek lows though!
If traders focus on pricing in a lower rate hike or a possible rate hike pause from the Fed, then USD could reclaim more pips against its major counterparts.
Watch out for a clear breakout below the channel and SMAs that we’ve marked, which could send BTC/USD back to areas of interest like $26,800 or even $25,200.
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