Bitcoin Price Analysis: BTC Fails at Critical Resistance, $31K Retest Incoming?
Just as bitcoin started to show some promising signs for the bulls, it rolled over and fell by 5% today, hitting $33,000 – the low as of writing these lines. The primary cryptocurrency looked hopeful as it traded inside a short-term rising price channel since double-bottoming at $31.5K over the weekend.
The price channel allowed BTC to hit a 12-day high at $36.6K on Tuesday, but the volume was not increasing and BTC reversed after failing to close a daily candle above the 20-day moving average line (MA). Since then, the cryptocurrency broke beneath the rising price channel and found support at $34,115 (short-term .382 Fib) toward the end of the day.
Today, BTC attempted to push higher and retested the price channel – this time as resistance. However, bitcoin got heavily rejected, and as mentioned above reached as low as $33K earlier.
Overall, if $32.5K doesn’t hold, which is the previous higher low of the 4-hour chart, then we can expect another retest (sixth since May) of the $30-31K support area. On the other hand, if BTC can sustain this price area, then the first major resistance is a daily close above the MA-20 line, currently at $35.4K.
Another thing to note is the longer timeframe. Since mid-May, Bitcoin is trading inside a range between $30K and $42K. Until a clear breakout, the coin is expected to chop some long and short positions.
BTC Price Support and Resistance Levels to Watch
Key Support Levels: $33,000, $32,460, $31,675, $31,185, $30,600.
Key Resistance Levels: $34K, $35,420, $36,600, $37,460.
Looking ahead, the first support now lies at today’s low of $33,000. This is followed by $32,460 (as mentioned above), $31,675, $31,185 (downside 1.618 Fib Extension), $30,600 (weekend support) and $30,000.
On the other side, the first resistance lies at $34K. This is followed by $35,420 (20-day MA), $36,600 (weekly high), and $37,460 (50-day MA).
The daily RSI has consistently produced lower highs (falling blue trendline) since the end of February, the last lower high took place on Tuesday, following the $36K rejection. This falling trendline indicates that the bulls have failed to establish increasing momentum each time a rally started, and it could be an indicator that they are quickly running out of steam.
A break above this trendline would be the first signal that bullish strength is starting to return to the market.
Bitstamp BTC/USD Daily Chart
Bitstamp BTC/USD 4-Hour Chart
Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).
PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to get 50% free bonus on any deposit up to 1 BTC.
Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.
Cryptocurrency charts by TradingView.