What Could Trigger A Fresh Rally?

Bitcoin price consolidates above $34,500 and $34,000. BTC could begin a new rally if it manages to breach the $35,350 resistance zone.

• Bitcoin is still struggling to advance above $35,250 and $35,350.
• The price is trading near $34,850 and the 100 hourly simple moving average.
• There is a major contracting triangle forming with support near $34,250 on the hourly chart of the BTC/USD pair (Kraken data feed).
• The pair could gain bullish momentum if there is a clear move above the $35,350 resistance.

Bitcoin price remained range-bound

Bitcoin price remained in a range above the $34,000 Support Zone. BTC attempted a further increase above the $35,000 resistance zone. However, the bears remained active around $35,250 and $35,350.

The bulls made several attempts to breach the $35,250 resistance but failed. A high formed near $35,382 before the price began a downward correction. There was a move below the $35,000 level. The price even climbed below the 50% Fibonacci retracement level of the upward move from the $34,133 low to $35,382 high.

Bitcoin is now trading near $34,850 and the 100-hour simple moving average. There is also a major contracting triangle forming with support near $34,250 on the hourly chart of the BTC/USD pair. The triangle support is near the 76.4% Fibonacci retracement level of the upward move from the $34,133 low to $35,382 high.

On the upside, immediate resistance is near the $35,000 level. The next key resistance could be near $35,050 or the upper trendline of the triangle. A clear move above the $35,050 resistance could open the door for a move towards the $35,250 resistance.

Source: BTCUSD on TradingView.com

The next key resistance could be $35,350, above which the price could rise to $36,000. Any further gains could propel BTC towards the $36,200 level.

More losses in BTC?

If Bitcoin fails to rise above the $35,000 resistance zone, it could continue to decline. Immediate downside support is near the $34,600 low.

The next major support lies near the $34,250 area and the lower trendline of the triangle. If there is a move below $34,250, there is further downside risk. In the presented case, the price could even fall below the $34,000 support level in the near term.

Technical indicators:

Hourly MACD – The MACD is now accelerating into the bearish zone.

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

Major support levels – $34,600, followed by $34,250.

Major resistance levels – $35,000, $35,250 and $35,350.