Bitcoin Fails Again, Why BTC Remains At Risk of Sharp Decline

Bitcoin Fails Again, Why BTC Remains At Risk of Sharp Decline

Business
July 8, 2021 by admin
22
Bitcoin price failed again to clear the $35,000 resistance against the US Dollar. BTC started a fresh decline below $34,000 and it remains at a risk of more downsides. Bitcoin started a fresh decline after it failed to settle above the $35,000 resistance zone. The price is now trading below the $33,500 support and the
shutterstock_1334283245.jpg


Bitcoin price failed again to clear the $35,000 resistance against the US Dollar. BTC started a fresh decline below $34,000 and it remains at a risk of more downsides.

  • Bitcoin started a fresh decline after it failed to settle above the $35,000 resistance zone.
  • The price is now trading below the $33,500 support and the 100 hourly simple moving average.
  • There was a break below a major bullish trend line with support near $33,850 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could correct higher, but the bulls are likely to face resistance near $34,000.

Bitcoin Price Breaks Key Support

Bitcoin gained pace after it broke the $34,000 resistance zone. BTC even spiked above the $35,000 resistance, but there was no upside continuation.

The price formed a high near $35,000 and it started a fresh decline. There was a break below the $34,000 support level. Besides, there was a break below a major bullish trend line with support near $33,850 on the hourly chart of the BTC/USD pair.

The pair is now trading below the $33,500 support and the 100 hourly simple moving average. A low is formed near $33,134 and the price is now consolidating losses.

An initial resistance on the upside is near the $33,550 level. It is near the 23.6% Fib retracement level of the recent decline from the $35,000 swing high to $33,134 low. On the downside, an initial support is near the recent low at $33,134.

Bitcoin Price

Source: BTCUSD on TradingView.com

The first major support is near the $33,000 zone. If bitcoin price fails to stay above the $33,000 support, there could be a sharp decline. The next major support is near the $32,200 level. If there is a downside break below the $32,200 and $32,000 support levels, the price could continue to move down.

Fresh Increase in BTC?

If bitcoin remains stable above the $33,000 support zone, it could start a fresh increase in the near term. An immediate resistance on the upside is near the $33,550 level.

The first major resistance is near $34,000. It is near the 50% Fib retracement level of the recent decline from the $35,000 swing high to $33,134 low. If there is a close above the $34,000 resistance zone, the price could rise towards the $35,000 hurdle.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now in the oversold zone.

Major Support Levels – $33,000, followed by $32,200.

Major Resistance Levels – $33,550, $34,000 and $35,000.

Add a comment