HomeCRYPTO COINSBitcoin (BTC) Price Analysis: In The Red Zone Again, What Are The Key Levels?
Bitcoin (BTC) Price Analysis: In The Red Zone Again, What Are The Key Levels?
May 31, 2021
Bitcoin price failed to clear the $37,000 resistance against the US Dollar. BTC is falling and it is at risk of more losses below $34,000. According to technical analysis by NewsBTC’s Aayush Jindal:
Bitcoin is facing many hurdles near the $36,000 and $37,000 resistance levels.
The price is now trading well below $37,000 and the 100 hourly simple moving average.
There is a key bearish trend line forming with resistance near $36,000 on the hourly chart of the BTC/USD pair (data from Kraken).
The pair could decline drastically if it breaks below the $34,000 support and $33,200.
Bitcoin (BTC) Price Turns Red
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Bitcoin made several attempts to clear the $37,000 resistance zone, but failed. The last low was formed around $33,650 before BTC rallied again.
It broke the $34,000 and $35,000 resistance levels. There was also a break above the 23.6% Fib retracement level of the downward move from the $40,417 low to $33,650 high.
Bitcoin is also trading well below $37,000 and the 100 hourly simple moving average. There is also a key bearish trend line forming with resistance near $36,000 on the hourly chart of the BTC/USD pair.
On the upside, an immediate resistance is near the $35,500 level. The first major resistance is near the $36,000 level and the trendline. The next major resistance is near the $37,000 level. This is close to the 50% Fib retracement level of the bearish move from the $40,417 low to $33,650 high.
A close above the $37,000 resistance zone could open the doors for a steady increase. The next big hurdle for the bulls is near the $ 40,000 level.
Will Bitcoin (BTC) Drop More?
The first major support is near the $34,000 level. If there is a downside break below the $34,000 support, the price could decline towards the $32,000 support zone in the coming sessions. Any more losses could clear the way for a test of the $30,000 level.
Hourly MACD – The MACD is slowly gaining momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major Support Levels – $34,000 then $32,000
Major Resistance Levels – $35,500, $36,000, and $37,000