Bitcoin price extended its decline and tested the $31,500 area against the US Dollar. BTC is now recovering from losses, but it will likely face sellers near $34,000 and $35,000.
- Bitcoin remained in bearish territory until it broke the $32,000 support area.
- The price is now trading well below $35,000 and the 100 hourly simple moving average.
- There is a major bearish trend line forming with resistance near $35,100 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is likely to correct higher, but the bears may prevent gains above $35,000 in the near term.
Bitcoin Price Could Recover Losses
Bitcoin struggled to stay above $33,000 and is extended its retreat. BTC broke the $32,500 and $32,000 support levels to move further into a bearish zone.
The price surged below $31,500 and settled well below the 100 hourly simple moving average. It traded as low as $31,310 and recently started an upward correction. Bitcoin is now back above the $32,000 and $32,500 resistance levels.
There was also a break above the 23.6% Fib retracement level of the recent decline from the $36,170 swing high to $31,310. There is an initial resistance on the upside near the $33,800 level (last breaking area).
The 50% Fib retracement level of the recent decline from the $36,170 high to $31,310 is also near $33,800. The main resistance is now forming near The $35,000 level and the 100-hour simple moving average. There is also a major bearish trend line forming with resistance near $35,100 on the hourly chart of the BTC/USD pair.
Source: BTCUSD on TradingView.com
Therefore, the Bitcoin bulls are likely to face significant resistance near the $35,000 area and the 100 hourly SMA. The next major resistance on the upside is at $36,200.
More losses in bitcoin?
If Bitcoin fails to surpass the $33,800 resistance or trendline resistance, it may continue to decline. There is immediate support on the downside near the $32,000 level.
The next major support is near the $31,500 level. A break-down below $31,500 could open the door for further losses. In the mentioned case, the price may test up to $30,000.
Hourly MACD – The MACD is slowly moving into the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is struggling to break above the 50 level.
Key support levels – $32,000, followed by $31,500.
The main resistance levels are $33,800, $34,000 and $35,000.