Bitcoin Tops Near $35K, What Could Trigger Fresh Decline To $30K
Bitcoin price recovered above $33,000, but it failed to climb above $35,000 against the US Dollar. BTC is retreating from the 100 hourly SMA and it could extend its losses.
Bitcoin started a decent recovery and it climbed above the $34,000 level.
The price is now facing hurdles near $34,000 and the 100 hourly simple moving average.
There is a crucial bearish trend line forming with resistance near $33,800 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair must clear the 100 hourly SMA and $34,000 to continue higher in the near term.
Bitcoin Price is Facing Hurdles
Bitcoin started a steady increase above the $33,000 and $33,500 resistance levels. BTC even spiked above the $34,000 resistance zone, but it failed to gain pace above the 100 hourly simple moving average.
It is now facing hurdles near $34,000 and the 100 hourly simple moving average. A high was formed near $34,877 and the price is now correcting gains. It declined below the 23.6% Fib retracement level of the recent recovery from the $28,900 swing low to $34,877 high.
An immediate support on the downside is near the $31,800 level. It is near the 50% Fib retracement level of the recent recovery from the $28,900 swing low to $34,877 high.
On the upside, an initial resistance is near the $33,800 level. There is also a crucial bearish trend line forming with resistance near $33,800 on the hourly chart of the BTC/USD pair. The main resistance is still near the $34,000 zone.
Source: BTCUSD on TradingView.com
Bitcoin must clear the 100 hourly SMA and then settle above the $34,000 zone to move into a positive zone. The next major resistance for the bulls could be $35,000.
More Losses in BTC?
If bitcoin fails to clear the $34,000 resistance or the trend line resistance, it could continue to move down. An immediate support on the downside is near the $31,800 level.
The next major support is near the $31,200 level. A downside break below $31,200 could open the doors for a fresh drop towards the $30,000 zone in the coming sessions.
Technical indicators:
Hourly MACD – The MACD is now moving into the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is back below the 50 level.
Major Support Levels – $31,800, followed by $31,200.
Major Resistance Levels – $33,800, $34,000 and $35,000.