Saturday 28 May 2022
Home / 3Achain / TA: Bitcoin Resumes Slide, Why BTC Bears Aim $35K

TA: Bitcoin Resumes Slide, Why BTC Bears Aim $35K

Bitcoin failed to recover above $39,500 and declined against the US Dollar. BTC remains at a risk of more losses and could even test $35,000.

  • Bitcoin struggled to recover above the $39,500 and $40,000 resistance levels.
  • The price is trading below $38,000 and the 100 hourly simple moving average.
  • There is a major bearish trend line forming with resistance near $38,850 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could extend losses below the $36,000 level in the near term.

Bitcoin Price Remains At Risk

Bitcoin price attempted an upside correction above the $38,800 resistance level. However, BTC struggled to recover above the $39,500 and $40,000 resistance levels.

A high was formed near $39,490 and the price started a fresh decline. There was a clear move below the $38,800 and $38,000 support levels. The price traded below the $37,000 level and the 100 hourly simple moving average.

A low is formed near $36,782 and bitcoin is now consolidating losses. On the upside, an initial resistance is near the $37,420. It is near the 23.6% Fib retracement level of the recent decline from the $39,490 swing high to $36,782 low.

The next key resistance is near the $38,200 level. The 50% Fib retracement level of the recent decline from the $39,490 swing high to $36,782 low is also near the $38,200 zone. More importantly, there is a major bearish trend line forming with resistance near $38,850 on the hourly chart of the BTC/USD pair.

Source: BTCUSD on TradingView.com

A clear move above the trend line resistance could send the price to $39,400 and the 100 hourly simple moving average. To move into a positive zone, the price must settle above the $40,000 level.

More Losses in BTC?

If bitcoin fails to start a recovery wave above the $38,850 resistance zone, it could continue to move down. An immediate support on the downside is near the $36,800 zone.

The next major support is seen near the $36,500 level. If there is a downside break below the $36,500 support zone, the price might gain bearish momentum for a move to $35,000.

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 well above the 50 level.

Major Support Levels – $36,800, followed by $36,500.

Major Resistance Levels – $38,200, $38,500 and $39,500.

About Sean Patterson

Check Also

WEMIX gains 200%+ after stablecoin and boosted staking rewards announcement

Blockchain-based gaming, also known as GameFi, is an up-and-coming sector that could potentially be one of the primary catalysts for kickstarting the mass adoption of blockchain technology. WEMIX, a gaming protocol that operates on the Klaytn network, aims to get in on the GameFi revolution and this week, the project's native token (WEMIX) rallied even as the wider market continued to sell-off. Data from Cointelegraph Markets Pro and TradingView shows that since hitting a low of $1.27 on May 12, WEMIX price climbed 269% to hit a daily high at $4.70 on May 25 as its 24-hour trading volume increased to $652 million. WEMIX/USDT 1-day chart. Source: TradingViewThree reasons for the price reversal for WEMIX are the upcoming launch of WEMIX 3.0, a series of project launches and partnership agreements, and the introduction of lockup staking for token holders. WEMIX 3.0The main development attracting attention to WEMIX is the protocol's planned mainnet launch, which is scheduled to..

Leave a Reply

Your email address will not be published. Required fields are marked *