TA: Bitcoin Holds Strong At $31K, Why The Bulls Are Facing Uphill Task

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Bitcoin price is stuck in a range below the $33,500 and $33,800 resistance levels against the US Dollar. BTC is likely to continue lower unless it clears the $33,800 resistance.

  • Bitcoin retested the $31,000 zone and managed to stay in a range.
  • The price is currently facing resistance near $32,800 and the 100 hourly simple moving average.
  • There is a short-term ascending channel or a <a class="wpg-linkify wpg-tooltip" title="

    Bear

    Bear market is defined as a decreasing set of prices for various types of assets. A bearish investor wants to profit from the movement of dropping prices. You can think of a bear, swinging his big paw downward on the investment, crushing prices.

    » Read more

    ” href=”https://www.newsbtc.com/dictionary/bear/” data-wpel-link=”internal”>bear flag forming with support near $31,900 on the hourly chart of the BTC/USD pair (data feed from Kraken).

  • The pair could trade in a range, with a strong resistance near $33,500 and $33,800.

Bitcoin Price Is Facing Strong Resistance

After a failed attempt to clear the $35,000 resistance, bitcoin price trimmed gains and traded below $33,800. BTC even broke the $32,500 level and settled below the 100 hourly simple moving average.

There was a spike below the $31,000 level, but it remained stable above $30,800. A low is formed near $30,823 and the price is currently recovering higher. It surpassed the 23.6% Fib retracement level of the downward move from the $34,915 high to $30,823 low.

Bitcoin price is currently facing resistance near $32,800 and the 100 hourly simple moving average. The 50% Fib retracement level of the downward move from the $34,915 high to $30,823 low is also near $32,800.

Bitcoin Price

Source: BTCUSD on TradingView.com

At the outset, it seems like there is a short-term ascending channel or a <a class="wpg-linkify wpg-tooltip" title="

Bear

Bear market is defined as a decreasing set of prices for various types of assets. A bearish investor wants to profit from the movement of dropping prices. You can think of a bear, swinging his big paw downward on the investment, crushing prices.

» Read more

” href=”https://www.newsbtc.com/dictionary/bear/” data-wpel-link=”internal”>bear flag forming with support near $31,900 on the hourly chart of the BTC/USD pair.  To continue higher, the bulls need to gain strength above $32,500, $32,800 and the 100 hourly SMA.

The next strong resistance is near the $33,500 and $33,800 levels. A close above $33,800 could increase the chances of a steady rise in the coming sessions.

Fresh Dip in BTC?

If bitcoin fails to clear the $32,800 resistance or $33,500, it could start a fresh decline. An initial support is near the channel support at $31,900.

A clear break below the channel support could open the doors for a larger decline towards the $30,800 support. Any more losses may possibly call for a downside break below the $30,000 support zone.

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 now close to the 50 level.

Major Support Levels – $31,800, followed by $30,800.

Major Resistance Levels – $32,800, $33,500 and $33,800.

Via: https://www.newsbtc.com

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