Bitcoin price dropped under $30,000, hunting for the Launchpad to $40,000

By John Isige
Published January 28, 2021 Updated January 28, 2021
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Bitcoin price dropped under $30,000, hunting for the Launchpad to $40,000

By John Isige
Published January 28, 2021 Updated January 28, 2021
  • Bitcoin begins the initial recovery phases after holding onto the 50-day SMA support.
  • BTC must break above the resistance at $32,000 and the ascending channel’s upper boundary to validate the upswing.

Bitcoin continued with the foreseen breakdown after losing support at $31,000. The bearish leg explored levels slightly under $30,000 but buyers were very keen on limiting the downward movements.

Meanwhile, the flagship cryptocurrency is trading above $30,000 amid the push by the bulls for gains heading back to $40,000. The immediate downside has been protected by the 50-day Simple Moving Average.

However, Bitcoin is also facing a critical resistance brought about by the ascending parallel channel’s middle boundary. Confirmed price action above this zone is likely to add credibility to the bullish outlook.

Simultaneously, the gap made by the 50-day SMA above the 100 SMA and 200 SMA suggests that buyers have the upper hand. A couple of key levels must come down for BTC to jumpstart the rally back to $40,000, the channel’s upper boundary and seller congestion at $32,000.

BTC/USD daily chart

BTC/USD price chart
BTC/USD price chart by Tradingview

On breaking above $32,000, more investors will be attracted to the market and are likely to respond by increasing their positions in BTC. This will create a strong tailwind behind Bitcoin, perhaps enough to shatter the hurdle at $36,000.

On the other hand, it is worth noticing that the Moving Average Convergence Divergence still reinforces the downtrend. The MACD tracks the direction of an asset’s trend and its momentum. For now, the MACD line is still below the signal line suggesting that recovery may take a while to shape.

Bitcoin intraday levels

Spot rate: $30,580

Relative change: 170

Percentage change: 0.6%

Trend: Bullish

Volatility: Low


The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
John Isige
1164 Articles
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige