August 5, 2021

TA: Bitcoin Prints Bearish Technical Pattern, Why It Could Revisit $32.2 K

2 min read

Bitcoin price is fixing gains and it is trading well below $35,000 against the United States Dollar. BTC could decrease further if it remains below $34,400.

  • Bitcoin began a downside correction below the $35,000 and $34,000 levels.
  • The cost is now trading listed below the $34,000 support and the 100 hourly simple moving average.
  • There is an essential contracting triangle forming with assistance near $33,600 on the per hour chart of the BTC/USD pair (data feed from Kraken).
  • The pair might decline further if it breaks the $33,600 and $33,500 assistance levels.

Bitcoin Price Remains At Risk

Bitcoin failed to climb up above the $36,000 zone and it is begun a fresh decrease. BTC traded listed below the $35,000 and $34,500 assistance levels to move into a bearish zone.

The price even broke the $34,000 level and settled listed below the 100 per hour easy moving average. A low was formed near $33,103 and the price is now consolidating losses. It recovered above the 23.6% Fib retracement level of the recent decrease from the $35,950 swing high to $33,100 low.

It seems like there is an essential contracting triangle forming with assistance near $33,600 on the hourly chart of the BTC/USD pair. If bitcoin rate stops working to remain above the triangle assistance and after that $33,500, there is a risk of a drawback break.

The next significant support is near the $33,00 level. If there is a disadvantage break below the $33,100 and $33,000 support levels, the rate could continue to move down.

Bitcoin Price

 Source: BTCUSD on TradingView.com

In the specified case, the cost might decrease towards the $32,500 zone. Anymore losses may possibly press the rate towards the $32,200 assistance. The next significant assistances sits near the $31,200 level.

Fresh Increase in BTC?

If bitcoin remains stable above the $33,500 assistance zone, it might start a fresh boost in the near term. An immediate resistance on the benefit is near the $34,000 level and the triangle upper pattern line.

The next key resistance is near $34,250 and the 100 hourly SMA. The main resistance is now forming near $34,400, above which the rate could revisit the $36,000 barrier. Any more gains could raise the price towards the $37,000 resistance.

Technical indications:

Hourly MACD –– The MACD is gradually losing speed in the bearish zone.

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

Major Support Levels –– $33,500, followed by $33,000.

Major Resistance Levels –– $34,000, $34,400 and $35,000.