TA: Bitcoin Holds Strong Above $30K, Why BTC Could Struggle Near $36K

Aayush Jindal

1 year ago

2 mins read

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Bitcoin price declined over 25% and it even traded close to $30,000 against the US Dollar. BTC started a fresh increase, but it is facing a strong resistance near $35,800 and $36,000.

Bitcoin started a downside correction below the $35,000 and $32,000 support levels.
The price is now recovering from $30,400, but it is well below the 100 hourly simple moving average.
There is a key bearish trend line forming with resistance near $35,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could struggle to continue higher unless it gains pace above $35,000 and $36,000.

Bitcoin Price Recovers From $30K

Yesterday, there was a sharp decline in bitcoin price after it broke the $35,000 support. BTC declined over 25% and it even broke the $32,000 support zone. It even traded close to the $30,000 level and settled well below the 100 hourly simple moving average.

A low was formed near $30,359 and it seems like the bulls remained in action above $30,000. There was a strong recovery wave from the $30,359 low and the price climbed above $32,000.

There was a break above the 23.6% Fib retracement level of the downward move from the $41,199 swing high to $30,359 swing low. However, the price is now facing a strong resistance near the $35,000, $35,800 and $36,000 levels.

Source: BTCUSD on TradingView.com

There is also a key bearish trend line forming with resistance near $35,000 on the hourly chart of the BTC/USD pair. The main resistance is near the $36,000 level. It represents the last breakdown zone and coincides with the 50% Fib retracement level of the downward move from the $41,199 swing high to $30,359 swing low.

To start a fresh rally towards the $40,000 level, bitcoin price must clear the $35,000, $35,800 and $36,000 resistance levels in the near term.

Fresh Dip in BTC?

If bitcoin fails to clear the $35,000, $35,800 and $36,000 resistance levels, there is a risk of another decline. An initial support on the downside is near the $33,800 level.

The first major support is near the $32,500 level. A clear break below the $32,500 level could lead the price towards the main $30,000 support level in the coming sessions.

Technical indicators:

Hourly MACD – The MACD is slowly gaining momentum in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is still below the 50 level.

Major Support Levels – $33,800, followed by $32,500.

Major Resistance Levels – $35,000, $35,800 and $36,000.

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
As a software engineer, Aayush harnesses the power of technology to optimize trading strategies and develop innovative solutions for navigating the volatile waters of financial markets. His background in software engineering has equipped him with a unique skill set, enabling him to leverage cutting-edge tools and algorithms to gain a competitive edge in an ever-evolving landscape.

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In a world where uncertainty reigns supreme, Aayush Jindal stands as a guiding light, illuminating the path to financial success with his unparalleled expertise, unwavering integrity, and boundless enthusiasm for the markets.

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