Bitcoin spiked higher above the $35,000 resistance, but it failed to extend gains. BTC traded as high as $35,130 before it started a fresh downside correction.
There was a break below the $34,500 support level and the 100 hourly simple moving average. It even traded below the $34,000 level, but the bulls were active near the $33,500 level. A low was formed near $33,594 and the price is now consolidating losses.
It climbed above the 23.6% Fib retracement level of the recent drop from the $35,130 swing high to $33,594 low. It seems like there is a major contracting triangle forming with support near $33,750 on the hourly chart of the BTC/USD pair.
If bitcoin price fails to stay above the triangle support and then $33,600, there could be a sharp decline. The next major support is near the $33,250 level. If there is a downside break below the $33,250 and $33,000 support levels, the price could continue to move down. Any more losses may possibly push the price towards the $32,200 support.
Fresh Rally in BTC?
If bitcoin remains stable above the triangle support and the $33,600 zone, it could start a fresh increase in the near term. An immediate resistance on the upside is near the $34,500 level and the triangle upper trend line.
The next key resistance is near $35,000, above which the price could attempt a strong increase. If there is a close above the $35,000 resistance zone, the price could rise towards the $36,500 level.
Hourly MACD – The MACD is slowly gaining pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is just above the 50 level.
Major Support Levels – $33,650, followed by $33,000.
Major Resistance Levels – $34,500, $35,400 and $36,500.