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

Bitcoin price failed to continue above $36,000. BTC corrected its gains and could 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.
• A major bullish trendline is forming with support near $34,300 on the hourly chart of the BTC/USD pair (Kraken data feed).
• The pair must remain above the $34,000 support to initiate further near-term upside.

Bitcoin price maintains support

Bitcoin Price Attempt another rally above $35,000 resistance. BTC broke through the $35,500 level but struggled to get closer to the $36,000 level. There was no test of the $36,200 resistance zone and the price started a downward correction.

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

Bitcoin is also trading near $34,700 and the 100-hour simple moving average. Furthermore, a major bullish trendline is 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% Fibonacci retracement level of the recent decline from the $35,945 high to $34,350 low. A sharp move above the $35,150 resistance could open the door for a move towards the $36,000 resistance.

Source: BTCUSD on TradingView.com

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

More losses in BTC?

If Bitcoin fails to move above the $35,150 resistance zone, it could continue to decline. Immediate downside support is near the $34,350 low and the trendline.

The next major support lies near the $35,000 area. If there is a move below $34,000, there is further downside risk. In the presented case, the price could fall to the $33,200 level in the near term.

Technical indicators:

Hourly MACD – The MACD is now losing momentum 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.