Bitcoin price declined sharply towards the $28,000 zone against the US Dollar. BTC is currently rising, but it might face a strong resistance near $33,200 and $33,500.

• Bitcoin almost 20% towards the $28,000 level before starting a fresh increase.
• The price is now back above $31,000 and trading nicely above the 100 hourly simple moving average.
• There was a break above a major bearish trend line with resistance near $32,350 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could continue higher, but it might face a strong resistance near the $33,500 zone.

Bitcoin Price Showing Positive Signs

Yesterday, we bitcoin price saw a sharp downside correction below the $32,000 support zone. BTC broke many important supports near $30,000 and it even spiked below the 100 hourly simple moving average.

It declined nearly 20% from the high and tested the $28,000 support zone. A low was formed near $27,967 before the price started a fresh increase. There was a steady rise and the price recovered above the $30,000 level. There was also a break above the 50% Fib retracement level of the downside correction from the $34,850 swing high to $27,967 swing low.

Source: BTCUSD on TradingView.com

More importantly, there was a break above a major bearish trend line with resistance near $32,350 on the hourly chart of the BTC/USD pair. The pair is now back above $31,000 and trading nicely above the 100 hourly simple moving average.

It is trading above the 61.8% Fib retracement level of the downside correction from the $34,850 swing high to $27,967 swing low. On the upside, there are a couple of important hurdles near $33,500 and $33,800.

A successful break and follow through move above the $33,500 is must for upside continuation. The next key resistance could be near the $35,000 zone.

Dips Supported in BTC?

If bitcoin fails to clear the $33,200 and $33,500 levels, it could start a fresh downward move. An initial support on the downside is near the broken trend line and $32,200.

The first major support is near the $31,400 level and the 100 hourly simple moving average. A close below the 100 hourly SMA could start a steady decline towards the $30,000 level or even $29,500 in the near term.

Technical indicators:

Hourly MACD – The MACD is gaining momentum in the bullish zone.

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

Major Support Levels – $32,200, followed by $31,400.

Major Resistance Levels – $33,200, $33,500 and $33,800.