TA: Bitcoin Correcting Gains, What Could Trigger Fresh Rally
Bitcoin price is correcting gains from well above $ 35,000 against the US Dollar. BTC is likely to find a strong support near the $ 34,000 zone in the near term.
- Bitcoin started a downside correction from the $ 36,000 zone.
- The price is now approaching the $ 34,000 support and the 100 hourly simple moving average.
- There was a break below a major bullish trend line with support near $ 35,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is likely to find a strong buying interest near $ 34,000 and the 100 hourly SMA.
Bitcoin Price is Approaching Support
Bitcoin climbed higher above the $ 34,000 and $ 35,000 resistance levels. BTC even broke the $ 35,500 level and the 100 hourly simple moving average.
However, the price failed to clear the $ 36,000 zone. A high was formed near $ 35,918 before the price started a fresh decline. The price traded below the $ 35,500 and $ 35,000 levels. There was a break below the 23.6% Fib retracement level of the upward wave from the $ 32,735 swing low to $ 35,920 high.
Moreover, there was a break below a major bullish trend line with support near $ 35,000 on the hourly chart of the BTC/USD pair. The pair is now approaching the $ 34,000 support and the 100 hourly simple moving average.
The 50% Fib retracement level of the upward wave from the $ 32,735 swing low to $ 35,920 high is also near the $ 34,350 zone. The next key support is near the $ 34,000 zone. If there is a downside break below the $ 34,350 and $ 34,000 support levels, the price could continue to move down.
Source: BTCUSD on TradingView.com
In the stated case, the price might decline towards the $ 32,500 zone. Any more losses may possibly push the price towards the $ 31,200 support zone.
Fresh Increase in BTC?
If bitcoin remains stable above the $ 34,000 support zone, it could start a fresh increase in the near term. An immediate resistance on the upside is near the $ 35,000 level and the trend line.
The next key resistance is near $ 35,250, above which the price could test the $ 36,000 barrier. Any more gains could lift the price towards the $ 37,000 resistance.
Technical indicators:
Hourly MACD – The MACD is slowly gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major Support Levels – $ 34,350, followed by $ 34,000.
Major Resistance Levels – $ 35,000, $ 35,500 and $ 36,000.