Bitcoin Price Faces Resistance and Declines
If you’ve been following Bitcoin’s price, you know that it failed to break through the $37,500 resistance. This led to a fresh decline from the $37,423 high and a drop below several key support levels, including $36,000 and $35,500. The price even briefly dipped below $35,000 before finding some support around the $34,650 zone, where it formed a low at $34,666. However, it has since started correcting its losses and is now trading below $36,500 and the 100 hourly Simple moving average.
Bitcoin Revisits Key Support Levels
After testing the support at $34,650, Bitcoin’s price has made a minor recovery. It climbed back above the $35,000 level and is now facing immediate resistance around $35,680. If it manages to surpass this level, the next hurdle could be near $36,000 or the bearish trend line with resistance near $36,050 on the hourly chart of the BTC/USD pair. The first major resistance is expected near $36,780.
However, if Bitcoin fails to rise above the $36,000 resistance zone, it might continue its downward movement. Immediate support on the downside is around $35,150, followed by a more significant support at $35,000. If it drops below this level, there is a risk of further downside towards the key support at $34,650 in the near term.
Technical Indicators and Potential Scenarios
As for technical indicators, the MACD is currently losing pace in the bearish zone while the RSI for BTC/USD is now below the 50 level. This suggests that there may be more downward pressure in the short term unless Bitcoin manages to gain bullish momentum and rally above key resistance levels at $36,780 and $37,000.
Source: BTCUSD on TradingView.com
Hot Take: Bitcoin’s Price Struggles to Find Direction
Bitcoin’s recent failure to break through key resistance levels has resulted in a renewed focus on support levels. The cryptocurrency continues to face challenges as it attempts to recover from its recent decline. Technical indicators suggest that there may be more downside potential in the near term unless Bitcoin manages to gain bullish momentum and overcome key resistance levels.
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