Bitcoin is heading towards support at $ 32,000

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Bitcoin is under pressure after unsuccessful $ 35,000 stress test

Bitcoin failed to settle above the important resistance level at $ 35,000 and is heading towards support at $ 32,000. This is a worrying development for the bulls as resistance at $ 35,000 has already been tested several times and Bitcoin has failed to develop bullish momentum above this level.

Unsurprisingly, the entire crypto market came under pressure after Bitcoin fell below $ 35,000. Ethereum faced resistance at the 20 EMA at $ 2270 and fell back to $ 2150. Dogecoin has moved below the significant support level at $ 0.25 and is trying to move below $ 0.24. XRP also gained momentum on the downside and is testing the $ 0.66 level.

Yesterday I wrote that Bitcoin needs additional upside catalysts to break above the $ 35,000 level. At this point, it looks like the path of least resistance is on the downside, so Bitcoin may have a decent chance of gaining momentum on the downside even if additional downside catalysts don’t appear.

Technical analysis

Bitcoin faced strong resistance of nearly $ 35,000 and pulled out. Currently, Bitcoin is between the support at $ 32,000 and the resistance at $ 35,000. The RSI is in moderate territory, and there is plenty of room to gain additional bearish momentum in case the right catalysts emerge.

If Bitcoin manages to settle below the low end of the $ 32,000- $ 35,000 range, it will drop to the psychologically important support level of $ 30,000. A successful test of this support level will pave the way for testing the next support which sits at the recent low at $ 28,800.

On the upside, Bitcoin needs to settle above resistance at $ 35,000 to gain further bullish momentum. If Bitcoin goes above $ 35,000, it will test for the next resistance at $ 36,000.

A move above the resistance at $ 36,000 will pave the way for the test of the resistance at $ 38,000. The 50 EMA is located nearby, so Bitcoin will likely face significant resistance near $ 38,000.

The story continues

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This article originally appeared on FX Empire

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