Bitcoin price is showing bearish signs below $35,000 against the US Dollar. BTC must surpass $35,000 and $36,000 to start a steady recovery wave.
Bitcoin Price Analysis
Bitcoin price attempted an upside break above the $40,000 barrier, but it failed to gain traction. BTC topped near $39,400 and it started a fresh decline. There was a break below many important supports near $38,000 and $37,000.
The price tumbled below the $36,000 support zone and the 55 simple moving average (4-hours). There was also a break below a major contracting triangle with support near $35,200 on the 4-hours chart of the BTC/USD pair.
The pair even declined below $32,000, but it remained stable above $31,000. A low is formed near $31,080 and the price is now correcting losses. It is trading near the $33,000 resistance zone. Besides, it is testing the 23.6% Fib retracement level of the recent decline from the $39,384 swing high to $31,081 low.
The first major resistance on the upside is near the $35,000 level. It is near the 50% retracement level of the recent decline from the $39,384 swing high to $31,081 low.
The main resistance is near the $36,200 level and the 55 simple moving average (4-hours). A clear break above the $36,200 zone could open the doors for a steady recovery wave in the near term.
On the downside, the $32,500 level is a decent support. The main support is now forming near the $31,000 level. If there is a downside break below the $31,000 support, the price could resume its decline.
Looking at the chart, bitcoin price is clearly trading below $36,000 and the 55 simple moving average (4-hours). Overall, the price could correct higher, but it is likely to face selling interest near the $35,00 and $36,000 levels.
4 hours MACD – The MACD is slowly losing momentum in the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI is now near the 40 level.
Key Support Levels – $32,000 and $31,000.
Key Resistance Levels – $35,000, $35,300 and $36,200.
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