Bitcoin Struggles Below $36K, Why BTC Could Extend Losses

0
84

Bitcoin price is showing bearish signs below $ 35,800 and $ 36,000 against the US dollar. BTC is likely to remain below the USD 34,000 and USD 33,000 support levels in the near future.

  • Bitcoin is trading in a bearish zone below the resistance levels of $ 35,800 and $ 36,000.
  • Price is gaining bearish momentum below $ 35,500 and the 100-hour simple moving average.
  • A major rising channel is forming on the hourly chart of the BTC / USD pair (data feed from Kraken) with support near USD 34,550.
  • The pair could accelerate losses once it breaks the USD 34,500 and USD 34,000 support levels.

Bitcoin price will turn bearish in the short term

Yesterday we discussed the chances of a $ 33,000 interruption in Bitcoin price. BTC followed a bearish path below the USD 35,000 support and broke the USD 34,000 support level.

It traded as low as $ 33,396, well below the 100-hour simple moving average. There has recently been an upward correction above the $ 34,000 level. The price rose above the 23.6% fib retracement level of the major drop from the high of $ 37,837 to the low of $ 33,396.

Bitcoin price even surged above $ 35,000, but struggled to break through the $ 35,800 resistance. It appears that the price failed to reach the 50% fib retracement level of the key drop from the $ 37,837 high to the $ 33,396 low.

Source: BTCUSD on TradingView.com

Price is now gaining bearish momentum below $ 35,500 and the 100-hour simple moving average. A major rising channel is also forming on the hourly chart for the BTC / USD pair with support near USD 34,550. If there is a significant break below the channel support, the price could drop sharply below the $ 34,000 support.

The next major support is near the $ 33,300 and $ 33,250 levels, below which the bears are likely to aim for a test of the $ 32,000 level.

New rise in BTC?

When Bitcoin begins a new uptrend, initial resistance will be near the $ 35,200 level. The first major resistance is near the $ 35,800 level and the 100-hour simple moving average.

To get into a positive zone, the price has to cross the resistance levels of $ 35,800 and $ 36,000. A successful close above the USD 36,000 resistance could open the doors for a push towards the USD 37,500 level.

Technical indicators:

Hourly MACD – The MACD is slowly gaining momentum in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC / USD is now close to the 40 level.

Major Support Levels – $ 34,000 followed by $ 33,300.

Main Resistance Levels – $ 35,800, $ 36,000, and $ 37,500.