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

Bitcoin price is correcting gains and it is trading well below $35,000 against the US Dollar. BTC could decline further if it stays below $34,400.

Bitcoin started a downside correction below the $35,000 and $34,000 levels.
The price is now trading below the $34,000 support and the 100 hourly simple moving average.
There is a key contracting triangle forming with support near $33,600 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could decline further if it breaks the $33,600 and $33,500 support levels.

Bitcoin Price Remains At Risk
Bitcoin failed to climb above the $36,000 zone and it is started a fresh decline. BTC traded below the $35,000 and $34,500 support levels to move into a bearish zone.
The price even broke the $34,000 level and settled below the 100 hourly simple 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 decline from the $35,950 swing high to $33,100 low.
It seems like there is a key contracting triangle forming with support near $33,600 on the hourly chart of the BTC/USD pair. If bitcoin price fails to stay above the triangle support and then $33,500, there is a risk of a downside break.
The next major support is near the $33,00 level. If there is a downside break below the $33,100 and $33,000 support levels, the price could continue to move down.

Source: BTCUSD on TradingView.com
In the stated case, the price might decline towards the $32,500 zone. Any more losses may possibly push the price towards the $32,200 support. The next major supports sits near the $31,200 level.
Fresh Increase in BTC?
If bitcoin remains stable above the $33,500 support zone, it could start a fresh increase in the near term. An immediate resistance on the upside is near the $34,000 level and the triangle upper trend 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 price could revisit the $36,000 barrier. Any more gains could lift the price towards the $37,000 resistance.
Technical indicators:
Hourly MACD – The MACD is slowly losing pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is just below the 50 level.
Major Support Levels – $33,500, followed by $33,000.
Major Resistance Levels – $34,000, $34,400 and $35,000.

By cryptounfold.net

I have over 10 years of experience in the field of cryptocurrency and blockchain technology. I have attended numerous conferences and events around the world, and my work has been featured in major publications such as CoinDesk, Bitcoin Magazine, and Yahoo Finance.

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