Bitcoin price fell below the $36,000 zone. BTC tested the USD 34,650 support zone and is currently consolidating losses around USD 35,500.
- Bitcoin fell heavily after the US CPI fell more than expected.
- The price is trading below $36,500 and the 100 hourly Simple Moving Average.
- A major bearish trendline is forming with resistance near $36,050 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could trade within a certain range before the bulls attempt another rise in the near term.
Bitcoin price revisits key support
Bitcoin price failed to surpass the USD 37,500 resistance. BTC started a new decline from the high of $37,423 and fell below many support points. There was a move below the USD 36,000 and USD 35,500 levels. The price even peaked below $35,000.
It retested the $34,650 support zone. A low was formed near USD 34,666 and the price is now correcting losses. There was a move above the USD 35,000 level. The price climbed above the 23.6% Fib retracement level from the recent decline from the $37,423 swing high to the $34,666 low.
Bitcoin is now trading below $36,500 and the 100 hourly Simple Moving Average. There is also a major bearish trendline forming with resistance around $36,050 on the hourly chart of the BTC/USD pair.
On the upside, immediate resistance is around the $35,680 level. The next major resistance could be near $36,000 or the trendline. The trendline is close to the 50% Fib retracement level of the recent decline from the $37,423 swing high to the $34,666 low.
Source: BTCUSD on TradingView.com
The first major resistance is near USD 36,780, above which the price could accelerate further. In the said case, it could test the USD 37,000 level. Any further gains could send BTC towards the USD 37,500 level, above which the price could gain bullish momentum and rally towards USD 38,000.
Lose more in BTC?
If Bitcoin fails to rise above the $36,000 resistance zone, the price may continue to decline. The immediate downside support is near the USD 35,150 level.
The next big support is $35,000. If there is a move below $35,000, there is a risk of more downside. In the mentioned case, the price could fall towards the key support at USD 34,650 in the short term.
Technical indicators:
Hourly MACD – The MACD is now losing pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major support levels – USD 35,150, followed by USD 34,650.
Major resistance levels – $36,000, $36,780 and $37,000.
