- Bitcoin started a downside correction below the $35,000 and $32,000 support levels.
- The price is now recovering from $30,400, but it is well below the 100 hourly simple moving average.
- There is a key bearish trend line forming with resistance near $35,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could struggle to continue higher unless it gains pace above $35,000 and $36,000.
Bitcoin Price Recovers From $30K
Yesterday, there was a sharp decline in bitcoin price after it broke the $35,000 support. BTC declined over 25% and it even broke the $32,000 support zone. It even traded close to the $30,000 level and settled well below the 100 hourly simple moving average.
A low was formed near $30,359 and it seems like the bulls remained in action above $30,000. There was a strong recovery wave from the $30,359 low and the price climbed above $32,000.
There was a break above the 23.6% Fib retracement level of the downward move from the $41,199 swing high to $30,359 swing low. However, the price is now facing a strong resistance near the $35,000, $35,800 and $36,000 levels.
Source: BTCUSD on TradingView.com
There is also a key bearish trend line forming with resistance near $35,000 on the hourly chart of the BTC/USD pair. The main resistance is near the $36,000 level. It represents the last breakdown zone and coincides with the 50% Fib retracement level of the downward move from the $41,199 swing high to $30,359 swing low.
Fresh Dip in BTC?
If bitcoin fails to clear the $35,000, $35,800 and $36,000 resistance levels, there is a risk of another decline. An initial support on the downside is near the $33,800 level.
The first major support is near the $32,500 level. A clear break below the $32,500 level could lead the price towards the main $30,000 support level in the coming sessions.
Hourly MACD – The MACD is slowly gaining momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is still below the 50 level.
Major Support Levels – $33,800, followed by $32,500.
Major Resistance Levels – $35,000, $35,800 and $36,000.