TA: Bitcoin Consolidates Below $35K, What Could Trigger Fresh Rally

Bitcoin price is holding gains above the $33,000 support zone against the US Dollar. BTC could start a fresh increase as long as it is above the $33,000 zone.

  • Bitcoin corrected lower, but the bulls remained active above the $33,000 zone.
  • The price is now trading just below the $34,500 support and the 100 hourly simple moving average.
  • There is a major contracting triangle forming with support near $33,750 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could start a decent increase if there is a clear break above $34,500 and $35,000.

Bitcoin Price Eyes Fresh Increase

Bitcoin spiked higher above the $35,000 resistance, but it failed to extend gains. BTC traded as high as $35,130 before it started a fresh downside correction.

There was a break below the $34,500 support level and the 100 hourly simple moving average. It even traded below the $34,000 level, but the bulls were active near the $33,500 level. A low was formed near $33,594 and the price is now consolidating losses.

It climbed above the 23.6% Fib retracement level of the recent drop from the $35,130 swing high to $33,594 low. It seems like there is a major contracting triangle forming with support near $33,750 on the hourly chart of the BTC/USD pair.

Bitcoin Price

Source: BTCUSD on TradingView.com

If bitcoin price fails to stay above the triangle support and then $33,600, there could be a sharp decline. The next major support is near the $33,250 level. If there is a downside break below the $33,250 and $33,000 support levels, the price could continue to move down. Any more losses may possibly push the price towards the $32,200 support.

Fresh Rally in BTC?

If bitcoin remains stable above the triangle support and the $33,600 zone, it could start a fresh increase in the near term. An immediate resistance on the upside is near the $34,500 level and the triangle upper trend line.

The next key resistance is near $35,000, above which the price could attempt a strong increase. If there is a close above the $35,000 resistance zone, the price could rise towards the $36,500 level.

Technical indicators:

Hourly MACD – The MACD is slowly gaining pace in the bullish zone.

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

Major Support Levels – $33,650, followed by $33,000.

Major Resistance Levels – $34,500, $35,400 and $36,500.



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