Why Bitcoin Price Could Turn Bearish Again If It Breaks $34K
Bitcoin price failed to stay above the key $35,000 support zone against the US Dollar. BTC is declining and it could slide heavily if there is a close below $34,000.
Bitcoin started a fresh decline from well above the $36,500 level.
The price is now trading near $34,500 and the 100 hourly simple moving average.
There was a break below a key bullish trend line with support near $35,750 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair is likely to accelerate lower if there is a clear break below the $34,000 support zone.
Bitcoin Price is Struggling
Bitcoin started a steady increase above the $35,000 resistance level. BTC even broke the $36,000 barrier and the 100 hourly simple moving average.
However, it failed to stay above the $36,500 zone. A high was formed near $36,698 and the price recently started a fresh decline. There was a break below the $35,500 and $35,000 support levels. The price broke the 23.6% Fib retracement level of the upward move from the $30,187 swing low to $36,698 high.
There was also a break below a key bullish trend line with support near $35,750 on the hourly chart of the BTC/USD pair. Bitcoin price is now trading near $34,500 and the 100 hourly simple moving average.
The first major support is near the $34,000 level. If there is a downside break below $34,000, the bears are likely to gain strength. The next key support is near the $33,450 level. It is near the 50% Fib retracement level of the upward move from the $30,187 swing low to $36,698 high.
Source: BTCUSD on TradingView.com
Any more losses may possibly push the price towards the $32,000 support zone. The main support is still near the $30,000 zone.
Fresh Increase in BTC?
If bitcoin remains 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 $35,200 level.
The next key resistance is near $35,500, above which the bulls are likely to aim a retest of $36,500. Any more gains could lift the price towards the $38,000 resistance. The next major hurdle is near the $40,000 zone.
Hourly MACD – The MACD is slowly gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major Support Levels – $34,000, followed by $33,400.
Major Resistance Levels – $35,200, $35,500 and $36,500.