Bitcoin price extended its decline below the $33,500 support against the US Dollar. BTC is now consolidating above $32,200, below which further declines could accelerate. According to the technical analysis of NewsBTC’s Aayush Jindal:
- Bitcoin started a fresh decline below the $33,500 and $33,200 support levels.
- Price is currently trading below the $33,000 reinforcement and the 100 hourly easy moving average.
- There is a short term contracting triangle forming with resistance near $33,000 on the hourly chart of the BTC/USD pair (data from Kraken).
- The pair may correct further on the upside, but the bulls are expected to compete with resistance around $33,500.
Bitcoin (BTC) Tests Valuable Underlying
Bitcoin failed to stay above the $33,500 support and extended its decline. BTC even broke the $33,000 support area and settled well below the 100 hourly easy moving average.
The price even dropped below $32.200 but did not continue. It is currently consolidating losses above the $32,200 reinforcement zone. It is currently 23% of the actual drop from $35,975 to $32,150. 6 Fib is approaching retracement level.
There is also a short term contracting triangle forming with resistance near $33,000 on the hourly chart of the BTC/USD pair. The formation foothold is near the $32.200 zone.
Therefore, the first major reinforcement is near the $32.200 zone. The next key reinforcement is near the $32,000 level. If bitcoin price fails to stay above the $32,000 support, there could be a steep drop. The next major foothold is near the $30,500 level. Any more losses could push the price below the $30,000 key support zone in the near term.
Will Bitcoin (BTC) Rise?
If bitcoin stays stable above the $32,000 support zone, it could start a correction to the upside. On the upside, an immediate resistance is near the $33,000 level.
The first major resistance is near $33,500. This is close to the 50% Fib retracement level of the accurate drop from the $35,975 high to $32,150 high. If there is a close above the $33,500 resistance zone, the price could actually rise towards the $34,000 resistance. The main drawback is still close to the $35,000 zone.
- Hourly MACD – The MACD is now losing momentum in the bearish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now accurately rising to the 50 level.
- Key Underlying Levels – $32,000, then $31,200
- Main Resistance Levels – $33,000, $33,500 and $34,000