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TA: Bitcoin Struggles Below $32K, Why Downtrend Could Resume

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Bitcoin 9
11
May

Bitcoin attempted a recovery wave above $32,000 against the US Dollar. BTC is struggling and remains at a risk of more losses below $30,000.

  • Bitcoin started a short-term recovery wave after it tested the $30,000 zone.
  • The price is now trading below $31,500 and the 100 hourly simple moving average.
  • There is a major bearish trend line forming with resistance near $31,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair might resume decline if it stays below the $32,400 resistance zone.

Bitcoin Price Faces Hurdles

Bitcoin price extended downsides below the $32,000 level. BTC even tested the $30,000 support zone and traded as low as $29,755.

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

However, they faced a strong resistance near the $32,650 zone. Bitcoin remained below the 50% Fib retracement level of the key drop from the $36,059 swing high to $29,755 low.

The price is now trading below $31,500 and the 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 the $31,250 level.

Source: BTCUSD on TradingView.com

The next key resistance could be near the $31,400 level. The key breakout zone could be near the $32,650 zone. A clear move above the $32,400 and $32,650 levels might start a steady increase in the near term.

More Losses in BTC?

If bitcoin fails to clear the $32,400 resistance zone, it could continue to move down. An immediate support on the downside is near the $30,500 level.

The next major support is seen near the $30,000 level. A downside break and close below the $30,000 support might start another decline. The next major support could be $29,500, below which the bears might aim a move towards the $28,800 support zone.

Technical indicators:

Hourly MACD – The MACD is now gaining 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, followed by $30,000.

Major Resistance Levels – $31,250, $32,400 and $32,650.

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