Bitcoin price has tested the USD 30,000 support and is now rebounding against the US dollar. BTC is likely to have strong selling interest near $ 37,000 and $ 38,000.
- Bitcoin extended its decline, even trading close to the $ 30,000 support.
- The price is now well below the $ 38,000 resistance and 100 hour simple moving average.
- An important bearish trendline is forming on the hourly chart of the BTC / USD pair (data feed from Kraken) with resistance near USD 37,000.
- The pair is likely to have strong selling interest near the $ 37,000 zone and the 100-hour SMA.
Bitcoin price faces hurdles
Bitcoin did not stay above the USD 35,000 support and prolonged its decline. BTC has even broken the $ 32,000 support zone and is well below the 100-hour simple moving average.
It nearly tested the $ 30,000 support zone, making a low near $ 31,037. An upward correction above the $ 32,000 and $ 33,000 levels has recently been initiated. There was a break above the 50% fib retracement level of the recent decline from the swing high of $ 38,827 to the swing low of $ 31,037.
Bitcoin is now facing resistance near the $ 35,800 level. This corresponds to the 61.8% fib retracement level of the recent decline from the swing high of $ 38,827 to the swing low of $ 31,037.
Source: BTCUSD on TradingView.com
The main resistance is now forming near the $ 37,000 level. An important bearish trendline is also forming on the hourly chart of the BTC / USD pair with resistance near USD 37,000. The 100 hour simple moving average is also near the USD 37,000 resistance zone.
A sharp break above the trendline resistance and the 100 hour simple moving average could open the doors for a bigger rebound towards the $ 40,000 level. Intermediate resistance is close to the $ 38,000 level.
Fresh drop of BTC?
If Bitcoin fails to break the $ 37,000 resistance, it risks falling again. Initial support on the downside is near the $ 34,000 level.
The first major support is now forming near the $ 32,000 zone. A downside break below the USD 32,000 support could in the short term trigger another drop towards the USD 30,000 support zone.
Hourly MACD – The MACD is slowly picking up pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC / USD is now above the 50 level.
Major Support Levels – $ 34,000, followed by $ 32,000.
Main Resistance Levels – $ 35,800, $ 37,000, and $ 38,000.