Cryptocurrency News

Bitcoin Rebounds, Why BTC Could Extend Losses in the Short Term


Bitcoin price failed to stay above the $35,000 support level against the US Dollar. BTC is declining and it is likely to extend losses below $33,000 in the near term.

  • Bitcoin started a fresh decline after breaking the $36,500 and $36,000 support levels.
  • The price is currently trading well below $36,000 and the 100 hourly simple moving average.
  • There was a break below a major ascending channel with support near $35,600 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could continue below the $33,000 and $32,000 support levels.

bitcoin price down more than 5%

Failed to stay above bitcoin $36,500 support area and increased his downfall. BTC broke the $35,500 support and declined below the 100 hourly simple moving average.

There was a clear break below a major ascending channel with support near $35,600 on the hourly chart of the BTC/USD pair. The pair broke below the $35,00 support and it even broke $34,200. There was a rise below the $34,000 level and the price is currently struggle to recover.

An immediate resistance is near the $34,150 level. It is close to the 23.6% Fib retracement level of the recent decline from the $36,824 high to $33.350 low.

Source: BTCUSD on TradingView.com

The first major resistance is near the $35,000 level. The 50% Fib retracement level of the recent decline from the $36,824 high to $33.350 low is also near the $35,100 level. Major resistance is near the $36,000 area and the 100 hourly simple moving average. A clear break above the $36,000 level could reverse the current bearish bias.

More losses in BTC?

If bitcoin fails to clear the $35,000 resistance, it could continue to decline. An initial support on the downside is near the $33,200 level.

The first major support is near the $32,500 level. The main support is near the $32,000 level. If the bulls fail to defend the $32,000 support area, there is a risk of a sharp decline. In this case, the price might even struggle to stay above the key $30,000 support area.

Technical Indicators:

Hourly MACD – The MACD is now gaining momentum in the bearish zone.

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

Key Support Level – $33,200, followed by $32,000.

Key Resistance Levels – $34,150, $35,000 and $36,000.



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