Bitcoin’s price against the US Dollar continued to fall below the $33,500 support level.
In the meantime, Bitcoin is consolidating above $32,200, a level below which the cryptocurrency could accelerate lower.
Bitcoin has started a new decline below the $33,500 and $33,200 support levels, which were previously broken.
The price is currently trading below the $33,000 support level as well as the 100 hourly simple moving average, indicating a downward trend.
On the hourly chart of the Bitcoin/USD pair, a short-term contracting triangle is forming, with resistance near $33,000 and support near $32,000. (data feed from Kraken).
It is possible that the pair will correct higher, but the bulls will likely run into resistance near $33,500.
Bitcoin’s price is testing critical support.
Bitcoin was unable to maintain its position above the $33,500 support level, and it continued its decline.
BTC even broke through the $33,000 support zone and settled well below the 100 hourly simple moving average, which is a key technical indicator.
The price even dropped below $32,200 at one point, but there was no subsequent movement.
After consolidating losses above the $32,200 support zone, the stock is now gaining ground.
It is now approaching the 23.6 percent Fibonacci retracement level of the recent decline from the $35,975 swing high to the $32,150 low.
On the hourly chart of the Bitcoin/USD pair, a short-term contracting triangle is forming, with resistance near $33,000 and support near $32,000.
It is close to the $32,200 zone where the triangle support is located.
Source: BTCUSD on TradingView.com
Because of this, the first major support is located near the $32,200 level.
The next major support level is located near the $32,000 mark.
If the bitcoin price fails to maintain its position above the $32,000 support level, it could experience a significant decline.
The next major support level is located near the $30,500 mark.
In the short term, any further losses could push the price below the main $30,000 support zone in the market.
Are the benefits of Bitcoin limited?
If bitcoin maintains its stability above the $32,000 support zone, it has the potential to begin an upward correction.
On the upside, there is immediate resistance near the $33,000 level.
The first significant resistance level is near $33,500.
In addition, it is near the 50% Fibonacci retracement level of the recent decline from the $35,975 swing high to the $32,150 swing low.
Providing the price closes above the $33,500 resistance zone, it is possible that the price will rise towards the $34,000 resistance zone.
The most difficult obstacle is still in the $35,000 range.
Indicators of technical performance:
Hourly MACD – The MACD is currently losing momentum and is moving into the bearish zone.
Hourly RSI (Relative Strength Index) – The hourly RSI for Bitcoin/USD is currently rising and is approaching the 50-point level.
Major Support Levels – $32,000, followed by $31,200 in the following order.
Levels of Major Resistance – $33,000, $33,500, and $34,000 dollars