TA: Bitcoin Rally Vulnerable If It Continues To Struggle Below $13.2K

Aayush Jindal

1 year ago

2 mins read

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Bitcoin price made another attempt to gain momentum above $13,200 against the US Dollar, but failed. BTC is likely to react to the downside if it continues to struggle near $13,200 and $13,300.

Bitcoin corrected lower below $13,000, but it found support near $12,800.
The price is back above the $13,000 zone and the 100 hourly simple moving average.
There is a key bullish trend line forming with support near $12,880 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair must gain strength above $13,200 to continue higher towards $13,500 in the near term.

Bitcoin Price is Lacking Momentum

Bitcoin price failed to stay above the $13,200 zone and started a downside correction. BTC broke the $13,100 and $13,000 levels, but the bulls were able to defend the $12,800 region.

A low is formed near $12,790 and the price is currently rising. It is back above the $13,000 zone and the 100 hourly simple moving average. There was a break above the 50% Fib retracement level of the recent drop from the $13,247 high to $12,790 low.

On the upside, the $13,150 level is an initial hurdle for the bulls. It is close to the 76.4% Fib retracement level of the recent drop from the $13,247 high to $12,790 low. There is also a connecting bearish trend line forming with resistance near $13,200 on the hourly chart of the BTC/USD pair.

Source: BTCUSD on TradingView.com

Bitcoin price must clear the $13,200 resistance and gain momentum to continue higher. The next major resistance on the upside is near the $13,300 level, above which the price might test $13,500.

Bearish Reaction in BTC?

If bitcoin fails to climb above the trend line and the $13,200 resistance zone, there could be a bearish reaction. An initial support is near the $13,000 zone and the 100 hourly simple moving average.

A downside break below the 100 hourly SMA could lead the price towards the $12,800 support. There is also a key bullish trend line forming with support near $12,880 on the same chart. A clear break below the trend line support could open the doors for a larger decline in the coming sessions.

Technical indicators:

Hourly MACD – The MACD is struggling to gain momentum in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is still above the 50 level, with positive signs.

Major Support Levels – $13,000, followed by $12,800.

Major Resistance Levels – $13,150, $13,200 and $13,500.

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.
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