Bitcoin (BTC) revives after practically plunging below $ 30,000

Bitcoin enjoys supports at $ 32,100 and $ 29,000.

Daily technical indicators turned bearish.

BTC follows an ascending support line

Bitcoin (BTC) declined significantly on January 11, dropping to a low of $ 30,402 after opening the day above $ 38,100.

Although Immediate Bitcoin regained some ground on January 12 from the previous day’s losses, this is likely a mere retracement in response to the earlier downward movement.

Bearish reversal on the day

Bitcoin’s price declined significantly on January 11, continuing its descent that began on January 8, until it hit a low of $ 30,402.

This low took BTC down well below the fibonacci retracement support, at $ 32,107. That said, the price quickly rallied, leaving behind a long lower wick, which is a sign of buying pressure.

At the time of writing, the price is near the $ 36,000 level

Despite this considerable rebound, the technical indicators turned bearish.

The MACD created its first two successive lower momentum bars since the beginning of the last portion of the bullish movement started on December 11, 2020. This is a sign of a bearish reversal in the trend, also reinforced by the fact that the RSI fell below 70.

If a bearish cross takes place within the Stochastic Oscillator, it would likely confirm that the trend has turned bearish.

The next support area is at the 0.5 fibonacci retracement level, at $ 29,000.

The six-hour chart shows that BTC has also rebounded to the ascending support line in place since December 14. This rebound was further preceded by a considerable concealed bullish divergence in the RSI, which is a strong sign of continuing trend. Despite this, the MACD is still in decline.

Bitcoin is approaching the 0.618 fibonacci retracement of the entire downward movement, and which is likely to offer resistance. As long as BTC has not managed to exceed it, the trend cannot be considered to be upward.