Bitcoin Reclaims $32,000, Why Short-Term Downside Still Attractive

Bitcoin started a fresh rally and traded above $31,000 against the US dollar. BTC is likely to correct gains, but losses are likely to remain well supported above $30,800.

  • Bitcoin is breaking above the $30,500 and $31,000 resistance levels.
  • The price is now above $31,000 and the 100 hourly simple moving average.
  • There is a connecting bullish trend line forming with support near $31,250 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair is likely to rise further if it breaks the $32,200 resistance.

Bitcoin price rises 5%

bitcoin price keep a good bid Above the $30,000 pivot level. It formed a base and started fresh gains above the $30,500 resistance zone.

The price rose above the $31,200 resistance and well above 100 hourly simple moving averageFinally, the price surged above $32,000 and traded as high as $32,186. It is now correcting gains below $32,000.

The 23.6% Fib retracement level of the move from the $30,234 swing low to $32,186 high. However, there is a connecting bullish trend line forming with support near $31,250 on the hourly chart of the BTC/USD pair.

Source: BTCUSD on TradingView.com

Immediate resistance on the upside is near $32,200. The next major resistance is near $32,200. A clear break above the $32,200 resistance could lead to another uptick. In the aforementioned case, the price could even clear the $32,500 resistance. The next major resistance is near $33,400.

Bitcoin’s dip limit?

If Bitcoin fails to break the $32,200 resistance zone, it could start a downside correction. Immediate support on the downside is near $31,500. The first major support is near $31,250 and the trendline. It is near the 50% Fib retracement level of the upward move from the $30,234 swing low to $32,186 high.

The main support is now near $30,800. A break below the $30,800 support could put a lot of pressure on the bulls. In the aforementioned scenario, the price could revisit the $30,000 support area in the near term.

Technical indicators:

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

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well above the 60 level.

Major support levels – $31,250, followed by $30,800.

Major resistance levels – $32,200, $32,200 and $33,400.

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