Bitcoin slumped as low as $33,000 after starting a strong decline below the $37,500 support. According to technical analysis by NewsBTC’s Aayush Jindal, it could continue to drop to $32,000.
Bitcoin Stabilizes Below $35,000
Bitcoin continued its decline after struggling to stay above the $36,000 support zone. BTC traded below the $35,500 and $35,000 support levels and there was a close below $35,000 and the 100 hourly simple moving average. It traded as low as $33,700, the lowest in the last few weeks. It is currently consolidating its losses and showing bearish signals below $34,000.
Bitcoin is currently facing resistance near the $34,000 level. The next key resistance could be near the $34,200 level. There is also a key bearish trend line forming with resistance near $34,200 on the hourly chart of the BTC/USD pair. The trend line is near the 23.6% Fib retracement level of the downward move from the $36,058 high to $33,700 high.
The main resistance is currently forming near the $35,000 level. This is close to the 50% Fib retracement level of the bearish move from the $36,058 high to $33,700 high. It must rise above the $35,000 level to start a fresh rise.
Will Bitcoin Drop More?
Jindal says that if Bitcoin fails to break past the $35,000 resistance zone, it may continue to move lower. An immediate support is near the $33,700 level. The next major support is seen near the $33,500 level. A downside break below the $33,500 support could trigger another sharp decline. The next major support could be $32,500. Any further losses could lead the price towards the $32,000 support zone.
What Do Technical Indicators Say?
- Hourly MACD – The MACD is now gaining momentum in the bearish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently below the 50 level.
- Major Support Levels – 33,500 then $32,000
- Major Resistance Levels – $34,000, 34,200 and 35,000
