Bitcoin price tested the $ 30,000 support and it is now recovering higher against the US Dollar. BTC is likely to face a strong selling interest near $ 37,000 and $ 38,000.
- Bitcoin extended its decline and it even traded close to the $ 30,000 support.
- The price is now well below the $ 38,000 resistance and the 100 hourly simple moving average.
- There is a key bearish trend line forming with resistance near $ 37,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is likely to face a strong selling interest near the $ 37,000 zone and the 100 hourly SMA.
Bitcoin Price is Facing Hurdles
Bitcoin failed to stay above the $ 35,000 support and it extended its decline. BTC even broke the $ 32,000 support zone and it settled well below the 100 hourly simple moving average.
It almost tested the $ 30,000 support zone and a low was formed near $ 31,037. Recently, it started an upside correction above the $ 32,000 and $ 33,000 levels. There was a break above the 50% Fib retracement level of the recent decline from the $ 38,827 swing high to $ 31,037 swing low.
Bitcoin is now facing resistance near the $ 35,800 level. It represents the 61.8% Fib retracement level of the recent decline from the $ 38,827 swing high to $ 31,037 swing low.
Source: BTCUSD on TradingView.com
The main resistance is now forming near the $ 37,000 level. There is also a key bearish trend line forming with resistance near $ 37,000 on the hourly chart of the BTC/USD pair. The 100 hourly simple moving average is also near the $ 37,000 resistance zone.
A clear break above the trend line resistance and the 100 hourly simple moving average could open the doors for a larger recovery towards the $ 40,000 level. An intermediate resistance is near the $ 38,000 level.
Fresh Drop in BTC?
If bitcoin fails to clear the $ 37,000 resistance, there is a risk of a fresh decline. An initial support on the downside is near the $ 34,000 level.
The first major support is now forming near the $ 32,000 zone. A downside break below the $ 32,000 support could start a fresh decline towards the $ 30,000 support zone in the near term.
Technical indicators:
Hourly MACD – The MACD is slowly gaining pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Major Support Levels – $ 34,000, followed by $ 32,000.
Major Resistance Levels – $ 35,800, $ 37,000 and $ 38,000.
