Bitcoin Price Reaches Key Juncture, Is This Bulls Trap or Technical Correction?

2023-11-03 03:54:35

Bitcoin price failed to continue higher above $36,000. BTC corrected gains and might find strong buying interest near the $34,200 support zone.

Bitcoin corrected gains from the $36,000 resistance zone.
The price is trading near $34,700 and the 100 hourly Simple moving average.
There is a major bullish trend line forming with support near $34,300 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair must stay above the $34,000 support to start a fresh increase in the near term.

Bitcoin Price Holds Support

Bitcoin price attempted another rally above the $35,000 resistance. BTC cleared the $35,500 level but struggled near the $36,000 level. There was no test of the $36,200 resistance zone and the price started a downside correction.

There was a move below the $35,500 and $35,000 levels. The price even spiked below the $34,500 level and the 100 hourly Simple moving average. A low is formed near $34,350 and the price is now consolidating losses near the 23.6% Fib retracement level of the recent decline from the $35,945 swing high to the $34,350 low.

Bitcoin also trades near $34,700 and the 100 hourly Simple moving average. Besides, there is a major bullish trend line forming with support near $34,300 on the hourly chart of the BTC/USD pair.

On the upside, immediate resistance is near the $35,750 level. The next key resistance could be near $35,150 or the 50% Fib retracement level of the recent decline from the $35,945 swing high to the $34,350 low. A clear move above the $35,150 resistance might open the doors for a move toward the $36,000 resistance.

Source: BTCUSD on TradingView.com

The next key resistance could be $36,200, above which the price could rise toward $37,000. Any more gains might send BTC toward the $37,500 level.

More Losses In BTC?

If Bitcoin fails to rise above the $35,150 resistance zone, it could continue to move down. Immediate support on the downside is near the $34,350 low and the trend line.

The next major support is near the $35,000 zone. If there is a move below $34,000, there is a risk of more downsides. In the stated case, the price could drop toward the $33,200 level in the near term.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bearish zone.

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

Major Support Levels – $34,300, followed by $34,000.

Major Resistance Levels – $34,750, $35,150, and $36,000.

Trang này có thể chứa nội dung của bên thứ ba, được cung cấp chỉ nhằm mục đích thông tin (không phải là tuyên bố/bảo đảm) và không được coi là sự chứng thực cho quan điểm của Gate hoặc là lời khuyên về tài chính hoặc chuyên môn. Xem Tuyên bố từ chối trách nhiệm để biết chi tiết.