Bitcoin correcting gains, which could trigger a new rally

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The price of Bitcoin corrects gains well above $ 35,000 against the US dollar. BTC should find strong support near the $ 34,000 area in the near term.

Bitcoin started a downward correction from the $ 36,000 area. Price is now approaching the $ 34,000 support and 100 hour simple moving average. There was a break below a major uptrend line with support near $ 35,000 on the hourly chart of the BTC / USD pair (Kraken data feed). The pair is likely to find strong buying interest near $ 34,000 and the 100 hour SMA. Bitcoin price is approaching support

Bitcoin climbed above resistance levels of $ 34,000 and $ 35,000. BTC even broke the $ 35,500 level and the 100-hour simple moving average.

However, the price failed to cross the $ 36,000 zone. A high was formed near $ 35,918 before the price started to fall further. The price traded below the $ 35,500 and $ 35,000 levels. There was a break below the 23.6% Fib retracement level of the ascending wave from the low of $ 32,735 to $ 35,920.

Additionally, there was a break below a major uptrend line with support near $ 35,000 on the hourly chart for the BTC / USD pair. The pair is now approaching the $ 34,000 support and the 100 hour simple moving average.

The 50% fiber retracement level of the Ascending Wave from the low of $ 32,735 to the high of $ 35,920 is also near the $ 34,350 area. The next key support is near the $ 34,000 area. If there is a break down below the support levels of $ 34,350 and $ 34,000, the price may continue to move lower.

Source: BTCUSD on TradingView.com

In the case indicated, the price could drop towards the area of ​​$ 32,500. Further losses could eventually push the price towards the support area of ​​$ 31,200.

New increase in BTC?

If bitcoin remains stable above the $ 34,000 support zone, it could start a further increase in the near term. Immediate upside resistance is near the $ 35,000 level and trendline.

The next key resistance is near $ 35,250, above which price may test the $ 36,000 barrier. Any further gain could push the price up towards the resistance of $ 37,000.

Technical indicators:

Hourly MACD – The MACD is slowly accelerating in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC / USD is now below level 50.

Major Support Levels – $ 34,350, followed by $ 34,000.

Major Resistance Levels – $ 35,000, $ 35,500 and $ 36,000.

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