TA: Why Bitcoin Price Remains At Risk for a Fresh Drop to $30K

Aayush Jindal

1 year ago

2 mins read

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Bitcoin price recovered above $34,000, but it struggled near $35,000 against the US Dollar. BTC is currently declining and it remains at a risk of more losses below $32K.

Bitcoin struggled to gain momentum above $34,500 and remained below $35,000.
The price is currently well below $33,000 and it is testing the 100 hourly simple moving average.
There is a key bullish trend line forming with support near $32,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair is likely to continue lower towards $31,500 and $30,800 in the near term.

Bitcoin Price Fails Near $35K

Yesterday, there was a decent recovery in bitcoin price above the $33,800 and $34,000 resistance levels. BTC even broke the $34,500 level and settled above the 100 hourly simple moving average.

However, the bulls struggled to gain strength above $34,500 and the price remained below $35,000. A high was formed near $34,872 before the price started a fresh decline. There was a break below the $34,000 and $33,800 support levels.

Bitcoin price declined below the 50% Fib retracement level of the upward move from the $30,943 swing low to $34,872 high. It is now trading well below $33,000 and it is testing the 100 hourly simple moving average.

Source: BTCUSD on TradingView.com

There is also a key bullish trend line forming with support near $32,400 on the hourly chart of the BTC/USD pair. The trend linen is close to the 76.4% Fib retracement level of the upward move from the $30,943 swing low to $34,872 high.

A downside break and close below $32,000 could start another decline. In the stated case, the price is likely to continue lower towards the $30,800 support or even $30,000.

Fresh Upsides in BTC?

If bitcoin stays above the $32,400 and $32,000 support levels, it could start a fresh increase. An initial resistance on the upside is near the $33,000 level.

The first major resistance is near the $33,800 level. The main resistance is still near the $34,500 and $35,000 levels, above which the price is likely to accelerate higher in the near term.

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 well below the 50 level.

Major Support Levels – $32,400, followed by $30,800.

Major Resistance Levels – $33,000, $33,800 and $34,500.

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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