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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.

Technical indicators:

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.

Credit: Source link

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