Bitcoin (BTC) price has once again tried to break above the $36,000 resistance but encountered difficulties. Currently, BTC price is correcting back and is testing the $35,200 support level.
Bitcoin (BTC) has once again failed to break above the critical resistance level of $36,000.
The current trading price is still above $35,000 and it remains above the 100 hourly simple moving average.
BTC/USD has broken out of a major contract triangle but encountered resistance near $35,000 on the hourly chart of the pair (data source from Kraken).
Currently, the pair is experiencing a correction and it is likely to find support near $35,200 or $35,000.
The challenges facing Bitcoin prices are huge
Bitcoin price is currently remaining relatively stable above the $34,000 support area. BTC is attempting to break out of the $35,250 resistance area again. On the hourly chart, it has broken above a major narrowing triangle with resistance near $35,000.
The price even broke the $35,500 resistance level but bears were active near the $36,000 level. The price reached a high near the $35,900 level and then declined again. The price has declined below the $35,500 level. Moreover, the price also declined below the 23.6% Fibonacci retracement level of the up move from the $34,560 swing low to $35,900 high.
Bitcoin is currently trading above $35,000 and the 100 hourly simple moving average. The price seems to be approaching the support which could be located at $35,200 or the 50% Fibonacci retracement level of the upward move from the $34,560 swing low to $35,900 high.
If the price can sustain above $35,200, a new uptrend is likely to begin. On a positive note, an immediate resistance is seen around $35,560. The next key resistance could be seen at $35,900 or near the recent highs. The main resistance remains near $36,000. A clear break above the $36,000 resistance could open the doors for further gains towards the $37,000 resistance.
Source: BTCUSD on TradingView
The next key resistance could be at $37,500, and once this is crossed, the price has the potential to move up to $38,000. If the move continues, Bitcoin could move up to the $38,800 level.
Does Bitcoin have more downside potential?
If bitcoin fails to clear the $35,560 resistance zone, it is likely to continue to decline. An immediate support on the downside is near the $35,200 low.
The next major support is near the $35,000 area or the 100 hourly moving average. If it falls below $35,000, there is a risk of further downside. In this case, the price might retest the $34,000 support in the near term.
Technical indicators:
Hourly MACD – The MACD is now losing speed in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently above the 50 level.
Major Support Level – $35,200, Minor Support Level – $35,000.
Major Resistance Levels – $35,560, $35,900 and $36,000.
