Bitcoin price failed to surpass the $35,000 resistance against the US Dollar once again. BTC started a fresh decline below $34,000 and it is at risk of further declines. According to technical analysis by NewsBTC’s Aayush Jindal:
- Bitcoin started a fresh decline after failing to rise above the $35,000 resistance zone.
- The price is now trading below the $33,500 support and the 100 hourly simple moving average.
- There was a break below a major bullish trend line with support near $33,850 on the hourly chart of the BTC/USD pair (data from Kraken).
- The pair could correct higher, but the bulls are likely to face resistance near $34,000.
Bitcoin (BTC) Breaks Major Support
Bitcoin gained momentum after breaking the $34,000 resistance zone. BTC even surpassed the $35,000 resistance but failed to continue up.
The price formed a high near $35,000 and started a fresh decline. There was a break below the $34,000 support level. There was also a break below a major bullish trend line with support near $33,850 on the hourly chart of the BTC/USD pair.
The pair is now trading below the $33,500 support and the 100 hourly simple moving average. BTC dropped as low as $33,134 and is now consolidating losses.
An initial resistance on the upside is near the $33,550 level. It is close to the 23.6% Fib retracement level of the decline from the $35,000 low to $33,134 low. An initial support on the downside is near the recent low at $33,134.
The first major support is near the $33,000 region. If bitcoin price fails to stay above the $33,000 support, there could be a steep drop. The next major support is near the $32,200 level. If there is a downside break below the $32,200 and $32,000 support levels, the price could continue to decline.
Will Bitcoin (BTC) Rise?
If bitcoin holds steady above the $33,000 support zone, a fresh increase could start in the near term. An immediate resistance on the upside is near the $33,550 level.
The first major resistance is near $34,000. This is close to the 50% Fib retracement level of the drop from the $35,000 low to $33,134 low. If there is a close above the $34,000 resistance zone, the price could rally towards the $35,000 hurdle.
- Hourly MACD – The MACD is now gaining momentum in the bearish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently in the oversold territory.
- Major Support Levels – $33,000 then $32,200
- Major Resistance Levels – $33,550, $34,000, and $35,000