Bitcoin Price Takes Hit Despite Drop in US CPI But Bulls Still In Control

Bitcoin price fell below the $36,000 zone. BTC tested the $34,650 support zone and is currently consolidating its losses near $35,500.

• Bitcoin fell sharply after the US CPI fell more than expected.
• The price is trading below $36,500 and the 100 hourly simple moving average.
• A key downtrend line is forming with resistance near $36,050 on the hourly chart of the BTC/USD pair (Kraken data feed).
• The pair could trade in a range before the bulls attempt further upside in the near term.

Bitcoin price revisits key support

The price of Bitcoin failed to exceed the $37,500 Resistance. BTC started a fresh decline from the $37,423 high and fell below numerous supports. There was a move below the $36,000 and $35,500 levels. The price has even fallen below $35,000.

It retested the $34,650 support zone. A low was formed near $34,666 and the price is now correcting losses. There was a move above the $35,000 level. The price climbed above the 23.6% Fib retracement level of the recent decline from the $37,423 high to $34,666 low.

Bitcoin is now trading below $36,500 and the 100-hour simple moving average. There is also a key downtrend line forming with resistance near $36,050 on the hourly chart of the BTC/USD pair.

On the upside, immediate resistance is near the $35,680 level. The next key resistance could be near $36,000 or the trendline. The trendline is near the 50% Fibonacci retracement level of the recent decline from the $37,423 high to $34,666 low.

Source: BTCUSD on TradingView.com

The first major resistance is near $36,780, above which the price could accelerate further. In the mentioned case, it could test the $37,000 level. Any further gains could propel BTC towards the $37,500 level, above which the price could gain bullish momentum and rally towards $38,000.

More losses in BTC?

If Bitcoin fails to rise above the $36,000 resistance zone, it could continue to decline. Immediate downside support is near the $35,150 level.

The next major support is $35,000. If there is a move below $35,000, there is further downside risk. In the presented case, the price could fall towards the key support of $34,650 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 – $35,150, followed by $34,650.

Major resistance levels – $36,000, $36,780 and $37,000.