Bitcoin Rally Stalls at $35,000 Resistance
The price of Bitcoin experienced a significant rally, surging over 15% amidst speculation about the listing of a spot ETF on DTCC. However, the rally was halted near the $35,000 resistance zone as bearish pressure emerged.
Downside Correction and Key Support Levels
Following the rally, Bitcoin underwent a downside correction and dropped below the $34,500 level. The price retraced below the 23.6% Fibonacci retracement level of the upward move from the $29,694 swing low to the $35,225 high.
Despite the correction, Bitcoin is currently trading above $33,200 and remains above the 100 hourly Simple Moving Average. There is also a key breakout pattern forming with resistance near $34,050 on the hourly chart of the BTC/USD pair. Additionally, the triangle support aligns with the 50% Fibonacci retracement level of the upward move.
Potential Upside Targets and Resistance Levels
In terms of resistance levels, immediate resistance is near $34,050, followed by $34,800. The main resistance zone is located at $35,000. A clear breakthrough above this level could propel Bitcoin towards $36,200 and subsequently to $37,000. Further gains might even push BTC to the $38,000 mark in the coming days.
Downside Risks and Support Levels
If Bitcoin fails to overcome the resistance at $34,050, there is a possibility of further downward movement. The initial support lies around $33,400. The next major support level can be found at approximately $32,800 along with the triangle trend line. A break below this support may result in a decline towards the $31,500 level in the near future.
Technical Indicators and Key Takeaways
According to technical indicators, the hourly MACD is losing momentum in the bullish zone. However, the hourly RSI for BTC/USD remains above the 50 level, indicating a relatively positive sentiment. Major support levels to monitor are $33,400 and $32,800, while key resistance levels are at $34,050, $34,800, and $35,000.
Source: BTCUSD on TradingView.com
Hot Take: Bitcoin Faces Resistance at $35,000 Amidst ETF Speculation
The recent surge in Bitcoin’s price was met with resistance near the $35,000 mark as bears entered the market. Despite this correction, Bitcoin remains above key support levels and continues to trade above the 100 hourly Simple Moving Average. The formation of a breakout pattern suggests potential upside targets if Bitcoin manages to overcome resistance levels. However, failure to do so could result in further downside movement. Technical indicators provide mixed signals but indicate an overall positive sentiment. Traders should closely monitor support and resistance levels to gauge Bitcoin’s future price action.
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