TA: Bitcoin Struggles Below $36K, Why BTC Could Extend Losses
Bitcoin price is showing bearish signs below $35,800 and $36,000 against the US Dollar. BTC is likely to continue lower below the $34,000 and $33,000 support levels in the near term.
- Bitcoin is trading in a bearish zone below the $35,800 and $36,000 resistance levels.
- The price is gaining bearish momentum below $35,500 and the 100 hourly simple moving average.
- There is a key rising channel forming with support near $34,550 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could accelerate losses once it breaks the $34,500 and $34,000 support levels.
Bitcoin Price Turns Short-Term Bearish
Yesterday, we discussed the chances of a break towards $33,000 in bitcoin price. BTC did follow a bearish path below the $35,000 support and it broke the $34,000 support level.
It traded as low as $33,396 and settled well below the 100 hourly simple moving average. Recently, there was an upside correction above the $34,000 level. The price climbed above the 23.6% Fib retracement level of the key decline from the $37,837 high to $33,396 low.
Bitcoin price even climbed above the $35,000, but it struggled to clear the $35,800 resistance. It seems like the price failed to clear the 50% Fib retracement level of the key decline from the $37,837 high to $33,396 low.
Source: BTCUSD on TradingView.com
The price is now gaining bearish momentum below $35,500 and the 100 hourly simple moving average. There is also a key rising channel forming with support near $34,550 on the hourly chart of the BTC/USD pair. If there is a clear break below the channel support, the price might decline sharply below the $34,000 support.
The next key support is near the $33,300 and $33,250 levels, below which the bears are likely to aim a test of the $32,000 level.
Fresh Increase in BTC?
If bitcoin starts a fresh upward move, an initial resistance is near the $35,200 level. The first major resistance is near the $35,800 level and the 100 hourly simple moving average.
To move into a positive zone, the price must clear the $35,800 and $36,000 resistance levels. A successful close above the $36,000 resistance could open the doors for a push towards the $37,500 level.
Hourly MACD – The MACD is slowly gaining momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now close to the 40 level.
Major Support Levels – $34,000, followed by $33,300.
Major Resistance Levels – $35,800, $36,000 and $37,500.