The price of Bitcoin is showing signs of recovery above USD 32,000 against the US dollar. BTC faces a tough $ 34,000 draw and is likely to stay lower to $ 30,000.
- Bitcoin is correcting higher from USD 28,865 and trading above the USD 32,000 resistance.
- The price is facing a strong resistance near USD 34,000 and the simple 100 (4 hours) moving average.
- A short-term contracts triangle is forming with a resistance near USD 33,000 on the 4-hour chart of the BTC / USD pair (Kraken data feed).
- The pair could face strong resistance near the USD 33,800 and USD 34,000 levels in the near term.
Bitcoin price remains in jeopardy
Over the past week, bitcoin price saw a Sharp decrease below USD 35,000 and USD 34,000 support levels against the US dollar. In fact, the BTC / USD pair fell below $ 30,000 in support and fell well below the 100 simple moving average (4 hours).
A low was formed at USD 28,800 before the price started an upward correction. It broke the USD 30,000 level and even recovered above the USD 31,500 level.
There was also a test of the 50% Fib retracement level of the downward movement from the $ 37,847 swing high to $ 28,867 low. A short-term contracts triangle is also forming with a resistance near USD 33,000 on the 4-hour chart of the BTC / USD pair.
Source: BTCUSD on TradingView.com
If there is a triangle break, the price could run into obstacles near the USD 33,800 and USD 34,000 levels. There is also a major bearish trendline forming near USD 34,500 on the same chart. It is close to the 61.8% Fib retracement level of the downward move from the $ 37,847 swing high to the $ 28,867 low.
A close above the USD 34,000 and USD 34,500 resistance levels could open the doors for greater gains. The next big hurdle is near the USD 38,000 level.
New drop in BTC?
If bitcoin doesn’t clear the USD 33,500 and USD 34,000 resistance levels, there is a risk of another decline. An initial support on the downside is close to USD 31,800.
A clear break below the USD 31,800 and USD 31,500 support levels could pave the way for a push towards the USD 30,000 support zone in the near term. Even more losses may require a $ 28,800 test.
4 Hour MACD – The MACD for BTC / USD is slowly gaining traction in the bullish zone.
4 Hour RSI (Relative Strength Index) – The RSI for BTC / USD is rising to the 50 level.
Major Support Level – USD 30,000
Major Resistance Level – USD 34,000