Key Points:
- Bitcoin’s struggle at the $35,000 resistance level.
- Analysis of key support levels and potential downside scenarios.
- Market sentiment and indicators influencing Bitcoin’s price.
Bitcoin’s price recently made an attempt to break above the $34,500 mark. However, a significant downward correction could be in the cards if it closes below the 100 hourly SMA.
Despite its best efforts, Bitcoin is still grappling with the formidable resistance at $35,000. At present, it is trading just above $34,200 and maintaining its position above the 100 hourly Simple Moving Average.
Notably, a key ascending channel is taking shape, with support levels hovering around $34,300 as observed in the BTC/USD hourly chart provided by Kraken.
Should the price fail to hold above $34,000 and subsequently $33,400, a sharp decline may be on the horizon.
Bitcoin’s Price Finds Crucial Support
The price of Bitcoin recently embarked on another ascent, crossing the $34,200 resistance zone. This rally aimed for the $35,000 resistance zone but encountered a notable lack of momentum.
Reaching as high as $34,758, Bitcoin struggled to push higher and is currently in the process of correcting gains, dropping below the $34,500 level. The retracement saw it dip below the 23.6% Fibonacci retracement level of the upward movement from the $33,318 swing low to the $34,758 peak.
Nonetheless, Bitcoin is still holding its position above $34,200, along with the 100 hourly Simple Moving Average. The hourly BTC/USD chart also reveals the presence of a significant ascending channel, featuring support in the vicinity of $34,300.
Looking at the upside, immediate resistance sits around the $34,500 level, followed by potential obstacles near $34,750 or the upper trend line of the channel. The primary hurdle remains firmly at the $35,000 mark. A clear breach of this resistance could pave the way for another sustained upward movement.
If Bitcoin struggles to conquer the $34,750 resistance zone, it may embark on a fresh downward trajectory. Initial support lies close to the $34,200 level and the 100 hourly Simple Moving Average.
The next substantial support level emerges around $34,000, or specifically, the 50% Fibonacci retracement level of the upward movement from the $33,318 swing low to the $34,758 high. Should Bitcoin dip below $34,000, the risk of further losses increases, with potential declines toward the $33,400 level or even the $32,500 level.
Key Technical Indicators:
Hourly MACD: The MACD is currently showing signs of slowing down within the bullish zone.
Hourly RSI (Relative Strength Index): The RSI for BTC/USD is now below the 50 level.
Major Support Levels:
$34,200, followed by $34,000.
Major Resistance Levels:
$34,500, $34,750, and $35,000.
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Disclaimer: Please note that the viewpoints and perspectives expressed by the author, as well as any individuals referenced in this article, are intended solely for informational purposes. They should not be construed as financial or investment advice. It’s important to acknowledge that investing in or trading cryptoassets carries inherent financial risks.
