Bitcoin price failed to clear the $35,000 resistance and started a fresh decline against the US Dollar. BTC is at risk of a larger decline as long as it is below $34,000. According to the technical analysis of NewsBTC’s Aayush Jindal:
- Bitcoin failed to extend its benefits above $34,650 and started a fresh decline below $34,000.
- Price is currently trading below the $33,500 reinforcement and the 100 hourly easy moving average.
- There was a break below a valuable bullish trend line with a support near $33,900 on the hourly chart of the BTC/USD pair (data from Kraken).
- The pair may correct losses, but it may face sellers close to $34,000 and the 100 hourly SMA.
Bitcoin (BTC) Drops Again
Yesterday, there was a smooth increase in Bitcoin above the $33,500 and $34,000 resistance levels. BTC even climbed above the $34.500 level, but failed to increase the gains.
Price climbed as high as $34,676 before starting a fresh decline. It broke the $34,000 support level and settled below the 100 hourly easy moving average. There was a break below a key bullish trend line with support near $33,900 on the hourly chart of the BTC/USD pair.
The pair rallied below the $33,000 level and slumped as low as $32.675. Bitcoin is now correcting losses and trading above $33,000. The actual drop from $34,676 to $32,675 is 23%. 6 Fib tests retracement level.
The first major resistance is near the $33,500 level and the 100 hourly SMA. The 50% Fib retracement level of the drop from the $34,676 high to $32.675 low is also near the $33,600 level.
The main resistance is currently near the $34,000 level. BTC needs to close above the $34,000 level to avoid further declines in the near term.
Will Bitcoin (BTC) Drop?
If bitcoin fails to recover above the $33,500 and $34,000 resistance levels, there is a risk of a larger decline. On the downside, the primary support is near the $32.650 level.
The first major pillar is near the $32,500 level. The mainstay is still near the $32,000 level, below which the price could simply drop to the $30,000 level.
- Hourly MACD – The MACD is slowly moving into the bullish zone correctly.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently well below the 50 level.
- Main Boost Levels – $32,500, then $32,200
- Main Resistance Levels – $33.500, $33.650 and $34,000