The price of Bitcoin rallied above $ 33,000 but failed to break above $ 35,000 against the US Dollar. BTC is pulling out of the 100 hourly SMA and could extend its losses.
Bitcoin started a decent recovery and surpassed the $ 34,000 level. The price is now facing hurdles near $ 34,000 and the 100 hourly simple moving average. A crucial downtrend line is forming with resistance near $ 33,800 on the hourly chart of the BTC / USD pair (data feed from Kraken). The pair must break above the 100 hourly SMA and $ 34,000 to continue higher in the near term.
Bitcoin price faces hurdles
Bitcoin started a steady rise above the $ 33,000 and $ 33,500 resistance levels. BTC even spiked above the $ 34,000 resistance zone, but failed to gain pace above the 100 hourly simple moving average.
It now faces hurdles near $ 34,000 and the 100 hourly simple moving average. A high was formed near $ 34,877 and the price is now correcting gains. It declined below the 23.6% Fib retracement level of the recent rally from the low of $ 28,900 to the high of $ 34,877.
An immediate support to the downside is near the $ 31,800 level. It is close to the 50% Fib retracement level of the recent rally from the low of $ 28,900 to the high of $ 34,877.
On the upside, an initial resistance is near the $ 33,800 level. A crucial downtrend line is also forming with resistance near $ 33,800 on the hourly chart of the BTC / USD pair. The main resistance is still near the $ 34,000 zone.
Source: BTCUSD on TradingView.com
Bitcoin must clear the 100 hourly SMA and then settle above the $ 34,000 zone to move into a positive zone. The next big resistance for the bulls could be $ 35,000.
More losses in BTC?
If bitcoin fails to clear the $ 34,000 resistance or trend line resistance, it could continue to move lower. An immediate support to the downside is near the $ 31,800 level.
The next major support is near the $ 31,200 level. A break to the downside below $ 31,200 could open the doors for a further decline towards the $ 30,000 zone in the coming sessions.
Hourly MACD – The MACD is now moving towards the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC / USD is back below the 50 level.
Major Support Levels – $ 31,800, followed by $ 31,200.
Major Resistance Levels – $ 33,800, $ 34,000, and $ 35,000.