Bitcoin price retested the $35,000 support level against the US Dollar. Bitcoin is rising now, but it must cross $37,000 and the 100 hourly SMA for a steady increase.
- Bitcoin is recovering above the $35,000 support area.
- The price is currently well below $37,000 and the 100 hourly simple moving average.
- There was a break above the major downtrend line with resistance near $36,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair must cross $37,000 and the 100 hourly SMA to start a new increase in the near term.
Bitcoin price faces major resistance
Bitcoin fails to stay above $37,000 support area Its descent extended. BTC even broke the $36,000 support level and settled below the 100 hourly simple moving average.
There was a rally below the $35,000 support level. A bottom was formed near $34,830 and the price is now correcting higher. There was a break above the $36,000 resistance level. The price rose above the 50% Fib retracement level of the recent decline from $37,915 to $34,830.
There was also a break above the major downtrend line with resistance near $36,000 on the hourly chart of the BTC/USD pair. The pair is still well below $37,000 and Simple moving average per 100 hours.
Source: BTCUSD on TradingView.com
The 76.4% Fibonacci retracement level of the recent decline from $37,915 to the $34,830 low is also nearing $37,200 to act as a major obstacle for the bulls. If there is a clear bullish break above $37,000 and $37,200, the price could start a significant increase.
The first major resistance is near the $38,500 level. The main resistance is still near the $40,000 area. A clear break above the $40,000 level could set the pace for an even bigger increase.
A new drop in bitcoin?
If Bitcoin fails to break above the $37,000 resistance, it may start a new decline. There is initial support on the downside near the $36,000 level.
The first major support is near the $35,500 level. If there is a downside break below the $35,500 and $35,000 support, the price may start a sharp decline towards $32,000.
Hourly MACD – The MACD is now gaining pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Key support levels – $36,000, followed by $35,500.
The main resistance levels are $37,000, $38,500 and $40K.