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TA: Bitcoin Price Starts Fresh Increase, Why $33,500 Is The Key

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Bitcoin price declined sharply towards the $28,000 zone against the US Dollar. BTC is currently rising, but it might face a strong resistance near $33,200 and $33,500.

  • Bitcoin almost 20% towards the $28,000 level before starting a fresh increase.
  • The price is now back above $31,000 and trading nicely above the 100 hourly simple moving average.
  • There was a break above a major bearish trend line with resistance near $32,350 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could continue higher, but it might face a strong resistance near the $33,500 zone.

Bitcoin Price Showing Positive Signs

Yesterday, we bitcoin price saw a sharp downside correction below the $32,000 support zone. BTC broke many important supports near $30,000 and it even spiked below the 100 hourly simple moving average.

It declined nearly 20% from the high and tested the $28,000 support zone. A low was formed near $27,967 before the price started a fresh increase. There was a steady rise and the price recovered above the $30,000 level. There was also a break above the 50% Fib retracement level of the downside correction from the $34,850 swing high to $27,967 swing low.

Bitcoin Price

Source: BTCUSD on TradingView.com

More importantly, there was a break above a major bearish trend line with resistance near $32,350 on the hourly chart of the BTC/USD pair. The pair is now back above $31,000 and trading nicely above the 100 hourly simple moving average.

It is trading above the 61.8% Fib retracement level of the downside correction from the $34,850 swing high to $27,967 swing low. On the upside, there are a couple of important hurdles near $33,500 and $33,800.

A successful break and follow through move above the $33,500 is must for upside continuation. The next key resistance could be near the $35,000 zone.

Dips Supported in BTC?

If bitcoin fails to clear the $33,200 and $33,500 levels, it could start a fresh downward move. An initial support on the downside is near the broken trend line and $32,200.

The first major support is near the $31,400 level and the 100 hourly simple moving average. A close below the 100 hourly SMA could start a steady decline towards the $30,000 level or even $29,500 in the near term.

Technical indicators:

Hourly MACD – The MACD is gaining momentum in the bullish zone.

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

Major Support Levels – $32,200, followed by $31,400.

Major Resistance Levels – $33,200, $33,500 and $33,800.

Source

All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.
BlackRock (IBIT), the Grayscale Bitcoin Trust (GBTC), Fidelity (FBTC), Ark Invest/21Shares (ARKB), Bitwise (BITB), Franklin (EZBC), Invesco/Galaxy (BTCO), VanEck (HODL), Valkyrie (BRRR), WisdomTree (BTCW), Hashdex (DEFI)

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