Bitcoin price is slowly recovering above $32,000 against the US Dollar. BTC is likely to face a strong selling interest near $33,500 and $34,000.
- Bitcoin seems to be consolidating above the $31,000 and $32,000 support levels.
- The price is currently just above $32,500 and the 100 hourly simple moving average.
- There was a break above a declining channel with resistance near $32,650 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is likely to continue higher towards the $33,500 and $34,000 resistance levels.
Bitcoin Price Stuck Below $33.5K
After forming a base above the $30,000 level, bitcoin price corrected higher. BTC managed to clear the $31,200 and $31,500 resistance levels to move into a short-term positive zone.
There was a break above the 23.6% Fib retracement level of the downward move from the $37,892 high to $28,809 low. It is now trading just above $32,500 and the 100 hourly simple moving average. There was also a break above a declining channel with resistance near $32,650 on the hourly chart of the BTC/USD pair.
Bitcoin price is approaching the $33,000 resistance level. The next key resistance could be near $33,500 or the 50% Fib retracement level of the downward move from the $37,892 high to $28,809 low.
Source: BTCUSD on TradingView.com
Any further gains could lead the price towards the $34,000 resistance zone. To move into a positive zone and start a steady increase, the bulls need to gain strength above $34,000 and $34,500 in the near term. The next major resistance is near the $35,800 level, where the bulls might take a stand.
Fresh Decline in BTC?
If bitcoin fails to recover above $33,500 and $34,000, there is a risk of another decline. An initial support on the downside is near the $32,000 level.
The first major support is near the $31,250 and $31,200 levels. A downside break below $31,200 and a follow up move below $31,000 may possibly start a strong decline towards $28,500 in the coming sessions. It seems like the price might consolidate in a range below the $34,000 resistance level before it makes the next major move.
Technical indicators:
Hourly MACD – The MACD is slowly gaining momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now recovering towards the 40 level.
Major Support Levels – $30,000, followed by $28,800.
Major Resistance Levels – $30,800, $31,000 and $32,800.
