Bitcoin price consolidates above USD 34,500 and USD 34,000. BTC could start a new rally if it manages to break the USD 35,350 resistance zone.
- Bitcoin is still struggling to gain pace for a move above $35,250 and $35,350.
- The price is trading near $34,850 and the 100 hourly Simple Moving Average.
- A major contracting triangle is forming with support near $34,250 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could gain bullish momentum if there is a clear move above the USD 35,350 resistance.
Bitcoin price remains within range
Bitcoin price remained within a range above the $34,000 support zone. BTC attempted a fresh surge above the USD 35,000 resistance zone. However, the bears remained active around $35,250 and $35,350.
The bulls made a few attempts to clear the USD 35,250 resistance but failed. A high was formed around $35,382 before the price started a downward correction. There was a move below the $35,000 level. The price even spiked below the 50% Fib retracement level of the upward move from the $34,133 swing low to the $35,382 high.
Bitcoin is now trading near $34,850 and the 100 hourly Simple Moving Average. A major contracting triangle is also forming with support near $34,250 on the hourly chart of the BTC/USD pair. The triangle support is near the 76.4% Fib retracement level of the upward move from the $34,133 swing low to the $35,382 high.
On the upside, immediate resistance is around the $35,000 level. The next major resistance could be near $35,050 or the upper trendline of the triangle. A clear move above the USD 35,050 resistance could open the doors for a move towards the USD 35,250 resistance.
Source: BTCUSD on TradingView.com
The next major resistance could be at USD 35,350, above which the price could rise towards USD 36,000. Any further gains could send BTC towards the USD 36,200 level.
Lose more in BTC?
If Bitcoin fails to rise above the $35,000 resistance zone, it may continue to decline. The immediate downside support is near the low of $34,600.
The next major support is near the $34,250 zone and the lower trendline of the triangle. If there is a move below $34,250, there is a risk of more downside. In the mentioned case, the price could even fall below the USD 34,000 support level in the short term.
Technical indicators:
Hourly MACD – The MACD is now gaining speed in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major support levels – USD 34,600, followed by USD 34,250.
Major resistance levels – $35,000, $35,250 and $35,350.
