Bitcoin Struggles to Break Resistance
The price of Bitcoin is facing challenges in surpassing the $35,250 and $35,350 levels. Currently, it is trading near $34,850 and the 100 hourly Simple Moving Average (SMA). On the hourly chart of the BTC/USD pair, a significant contracting triangle is forming with support around $34,250.
Bitcoin Price Stuck in a Range
Bitcoin has been consolidating above the $34,000 support zone. Although there have been attempts to break above the $35,000 resistance, the bears have remained active near $35,250 and $35,350.
Despite several efforts from the bulls to overcome the $35,250 resistance, they have not succeeded. The price reached a high of approximately $35,382 before undergoing a downside correction. It even dipped below the 50% Fibonacci retracement level of the upward move from the swing low of $34,133 to the high of $35,382.
Potential for Bullish Momentum
At present, Bitcoin is hovering around $34,850 and is close to the 100 hourly SMA. Moreover, a major contracting triangle is taking shape with support at around $34,250 on the BTC/USD hourly chart. The triangle’s support coincides with the 76.4% Fibonacci retracement level of the upward move from the swing low of $34,133 to the high of $35,382.
The immediate resistance lies near $35,000, followed by a key resistance level at around $35,050 or the upper trend line of the triangle formation. A clear breakthrough above this resistance could potentially lead to further gains towards the crucial barrier at $35,250.
Source: BTCUSD on TradingView.com
Possible Downside for Bitcoin
If Bitcoin fails to surpass the resistance zone at $35,000, it may experience further downward movement. The immediate support on the downside is near the recent low of $34,600.
The next significant support level is situated around $34,250, which aligns with the lower trend line of the contracting triangle. A breach below this level could potentially lead to more losses. In such a scenario, there is even a risk of Bitcoin dropping below the key support level of $34,000 in the near future.
Technical Indicators
The hourly MACD is currently indicating bearish momentum for Bitcoin. Additionally, the Relative Strength Index (RSI) for BTC/USD has fallen below the 50 level.
Major Support and Resistance Levels
Major Support Levels: $34,600, followed by $34,250
Major Resistance Levels: $35,000, $35,250, and $35,350
Hot Take: Bitcoin Struggles to Break Resistance as Bulls Face Strong Opposition
Bitcoin’s price remains trapped within a range as it struggles to overcome resistance levels at $35,250 and $35,350. Despite attempts from bulls to break through these barriers, bears have remained active. The failure to surpass these levels has led to a downside correction and a dip below the $35,000 mark.
To gain bullish momentum and continue its upward trajectory, Bitcoin needs a clear breakthrough above the resistance at $35,350. However, if it fails to do so, further downside movement is possible, with key support levels at $34,600 and $34,250. Technical indicators suggest a bearish trend, with the MACD indicating increasing momentum in the bearish zone and the RSI falling below 50.
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