Bitcoin Takes Back Seat After Massive Rally, Why BTC Could Restart Surge

0
69

Bitcoin price surged above $ 32,000 and hit a new all-time high against the US dollar near $ 34,780. BTC is currently correcting lower and could even test $ 31,500.

  • Bitcoin is showing many positive signs above the USD 30,000 and USD 31,500 levels.
  • Price corrects gains but continues to be well supported above $ 31,500 and the 100-hour simple moving average.
  • A major bullish trendline is forming on the hourly chart of the BTC / USD pair (data feed from Kraken) with support near USD 31,000.
  • The pair could start an extended bearish correction if it breaks the USD 32,500 support zone.

Profits to correct the Bitcoin price

Bitcoin price rose sharply above the USD 32,500 resistance zone. BTC has broken the $ 33,500 and $ 34,000 levels to continue rising. The cops even tried a test of the $ 35,000 level.

A new all-time high was formed near $ 34,780 before the price began a downward correction. There was a pause below the $ 33,500 and $ 33,000 levels. The price tested the $ 32,500 zone where it found strong support.

Bitcoin began to consolidate in an area above the $ 32,500 zone. It rose above the $ 33,000 level. There was a break above the 50% fib retracement level of the downside correction from the high of $ 34,780 to the low of $ 32,333.

Source: BTCUSD on TradingView.com

However, the price failed to break the $ 33,800 resistance zone. It looks like it failed near the 61.8% fib retracement level of the downside correction from a swing high of $ 34,780 to a swing low of $ 32,333.

It is now trading in a contracting triangle with resistance near the $ 33,550 zone on the hourly chart. A sharp break above the $ 33,550 and $ 33,800 levels could open the doors for another move higher. A closing price above $ 34,000 could further increase the chances of a near-term push towards $ 35,000 and $ 35,500.

Dips supported in BTC?

If Bitcoin fails to hit the $ 33,500 and $ 33,800 levels, it may break triangle support and move further down. The next big support is near the $ 31,500 level.

There is also a large bullish trendline with support near USD 31,000 on the same chart. Further losses could lead the price towards $ 30,000 and 100 hour SMA.

Technical indicators:

Hourly MACD – The MACD is gaining momentum in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC / USD is close to the 50 level.

Major support levels – $ 32,500, followed by $ 31,500.

Main Resistance Levels – $ 33,550, $ 34,000, and $ 35,000.