Bitcoin’s price has retraced its gains and is now trading far below $35,000 per US dollar. If BTC remains below $34,400, it may fall much lower.
Below the $35,000 and $34,000 marks, Bitcoin began a downward decline.
- The price has dropped below the $34,000 support level as well as the 100 hourly simple moving average.
- On the hourly chart of the BTC/USD pair, a significant contracting triangle is forming with support at $33,600. (data feed from Kraken).
- If the pair falls through the $33,600 and $33,500 support levels, it may fall much lower.
The Price Of Bitcoin Is Still In Danger
Bitcoin has began a new fall after failing to break through the $36,000 barrier. BTC moved into a negative zone after trading below the $35,000 and $34,500 support levels.
The price fell below the 100 hourly simple moving average after breaking beyond $34,000. Near $33,103, a low was made, and the price is presently consolidating losses. It bounced back above the 23.6 percent Fib retracement level of the current drop from the $35,950 swing high to the $33,100 low.
On the hourly chart of the BTC/USD pair, it appears that a major contracting triangle is forming with support at $33,600. There is a possibility of a downward break if bitcoin price fails to stay above the triangle support and then $33,500.
Near $33,00, the next significant support is found. If the price breaks below the $33,100 and $33,000 support levels on the downside, the price may continue to fall.
In the above scenario, the price might drop to around $32,500. Any more losses might bring the price down to the $32,200 support level. The next big support level is at $31,200.
Is there a new increase in BTC?
If bitcoin maintains its stability above the $33,500 support level, it may begin a new upward trend in the near future. On the upside, the $34,000 level and the triangle upper trend line provide immediate resistance.
Near $34,250 and the 100 hourly SMA, the next major resistance is found. The primary resistance is currently building at $34,400, over which the price may return to the $36,000 level. Any further rises might push the price beyond the $37,000 barrier.
Technical indicators:
Hourly MACD – The MACD is slowly losing pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is just below the 50 level.
Major Support Levels – $33,500, followed by $33,000.
Major Resistance Levels – $34,000, $34,400 and $35,000.
