Bitcoin price is correcting gains above $35,000 against the US Dollar. BTC is likely to find strong support near the $34,000 zone in the near term. According to technical analysis by NewsBTC’s Aayush Jindal:
- Bitcoin started a downside correction from the $36,000 zone.
- The price is now approaching the $34,000 support and the 100 hourly simple moving average.
- There was a break below a major bullish trend line with support near $35,000 on the hourly chart of the BTC/USD pair (data from Kraken).
- The pair is likely to find strong buying interest near $34,000 and the 100 hourly SMA.
Bitcoin (BTC) Price Approaches Support
Bitcoin climbed above the $34,000 and $35,000 resistance levels. BTC even broke the $35,500 level and the 100 hourly simple moving average.
However, the price failed to clear the $36,000 zone. The price traded as high as $35,918 before starting a fresh decline and then traded below the $35,500 and $35,000 levels. There was a break below the 23.6% Fib retracement level of the surge from the $32,735 high to $35,920 high.
There was also a break below a major bullish trend line with support near $35,000 on the hourly chart of the BTC/USD pair. The pair is now approaching the $34,000 support and the 100 hourly simple moving average.
The 50% Fib retracement level of the upward wave from the $32,735 high to $35,920 high is also near the $34,350 zone. The next important support is near the $34,000 region. If there is a downside break below the $34,350 and $34,000 support levels, the price could continue to decline.
In the stated case, the price could decline towards the $32,500 region. Any more losses could push the price towards the $31,200 support zone.
Will Bitcoin (BTC) Rise?
If bitcoin stays stable above the $34,000 support zone, it could start a fresh increase in the near term. An immediate resistance on the upside is near the $35,000 level and the trend line.
The next important resistance is near $35,250, above which the price might test the $36,000 barrier. Any further gains could push the price higher towards the $37,000 resistance.
- Hourly MACD – The MACD is slowly gaining momentum in the bearish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
- Major Support Levels – 34,350 followed by $34,000
- Major Resistance Levels – $35,000, 35,500 and $36,000