Bitcoin Struggles to Clear $35,000 Resistance
The price of Bitcoin is currently facing difficulty in surpassing the $35,000 resistance level. However, it is still trading above $34,200 and the 100 hourly Simple Moving Average (SMA).
Rising Channel Forming with Support Near $34,300
On the hourly chart of the BTC/USD pair from Kraken, there is a noticeable rising channel taking shape. This channel provides support near the $34,300 mark.
Possible Sharp Decline if Key Levels Are Broken
If Bitcoin fails to maintain its position above $34,000 and subsequently drops below $33,400, there is a possibility of a significant decline in its value.
Bitcoin Price Holds Key Support
The price of Bitcoin has once again experienced an upward movement and has managed to surpass the resistance zone at $34,200. It made an attempt to reach the $35,000 resistance level but lacked the necessary momentum to continue climbing higher.
As a result, the price has now started correcting its gains and is trading below the $34,500 level. It retraced below the 23.6% Fibonacci retracement level of its recent upward move from the swing low at $33,318 to the high at $34,758.
Despite this correction, Bitcoin is still trading above $34,200 and remains supported by the 100 hourly SMA. Additionally, there is a key rising channel forming on the hourly chart of the BTC/USD pair.
In terms of resistance levels, immediate resistance can be found near $34,500. The next significant resistance lies around $34,750 or at the upper trend line of the rising channel. The primary resistance zone remains at $35,000, and a clear break above this level could trigger further upward movement.
Source: BTCUSD on TradingView.com
Bitcoin could potentially encounter its next major resistance at $35,500, and a successful breach of this level might lead to a test of $36,200. If the bullish momentum continues, BTC may even reach the $36,500 level in the near future.
Downside Correction in BTC?
If Bitcoin fails to break through the resistance zone at $34,750, it may experience another decline in value. The immediate support on the downside can be found near $34,200 and the 100 hourly SMA.
The next significant support level is around $34,000 or the 50% Fibonacci retracement level of the recent upward move from $33,318 to $34,758. A drop below $34,000 could potentially lead to further downsides with a potential decline towards $33,400 or even $32,500.
Technical Indicators
The hourly MACD (Moving Average Convergence Divergence) is currently losing momentum within the bullish zone. Additionally, the RSI (Relative Strength Index) for BTC/USD has dropped below the 50 level.
Major Support Levels: $34,200 followed by $34,000
Major Resistance Levels: $34,500, $34,750, and $35,000
Hot Take: Bitcoin Continues to Struggle with Resistance Levels
Bitcoin’s price is currently facing challenges as it attempts to surpass the resistance levels at $35,000. Despite trading above key support levels and showing signs of a potential upward movement, Bitcoin lacks the necessary momentum to break through the resistance zone. If it fails to overcome these hurdles, there is a possibility of a downside correction. Traders should closely monitor the support and resistance levels mentioned in this article to make informed decisions about their Bitcoin investments.
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