Bitcoin struggles below $32k, why the downtrend may resume

Bitcoin is trying to bounce back above $32,000 against the US Dollar. BTC is struggling and there is still a risk of losses below $30,000.

  • Bitcoin started a short-term recovery wave after testing the $30,000 area.
  • The price is now trading below $31,500 and the 100 hourly simple moving average.
  • A major bearish trend line has formed with resistance near $31,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • If the pair stays below the $32,400 resistance, the pair is likely to continue its decline.

Bitcoin price faces obstacles

bitcoin price Disadvantages of extensions Below the $32,000 level. BTC even tested the $30,000 support area, trading as low as $29,755.

Recently, there has been an upside correction above $31,000. The price was able to climb to the 23.6% Fib retracement level of the key decline from the $36,059 high to $29,755 low. The bulls were able to push the price above the $32,000 resistance.

However, they face strong resistance near the $32,650 area. Bitcoin remains below the 50% Fib retracement level of the key decline from the $36,059 swing high to $29,755 low.

Prices are now below $31,500, while 100 hourly simple moving average. There is also a major bearish trend line forming with resistance near $31,400 on the hourly chart of the BTC/USD pair. On the upside, Bitcoin price is facing resistance near $31,250.

Source: BTCUSD on TradingView.com

The next key resistance level could be around $31,400. A key breakout area could be around $32,650. A clear break above the $32,400 and $32,650 levels could start a steady rise in the near term.

BTC to lose more?

If Bitcoin fails to break the $32,400 resistance zone, it may continue to decline. Immediate support on the downside is near $30,500.

The next major support is near $30,000. A downside break and close below the $30,000 support could start another decline. The next major support is likely to be at $29,500 and the bears are likely to target support at $28,800.

Technical indicators:

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

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

Major support levels – $30,500, then $30,000.

Major resistance levels – $31,250, $32,400 and $32,650.

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