Bitcoin remains at risk of dropping below the $31K level after the recent Elon Musk rally which came as the Tesla CEO changed his Twitter Bio to “Bitcoin” but let’s take a closer look at our bitcoin news today.
Bitcoin remains at risk of dropping as it shows some bearish signs below the $35K level with the price now trading near the $34,000 pivot level and the 100 simple moving average. There’s a key bullish trend line forming with the support close to the $33,900 on the 4-hour charts of the pair with it declining heavily towards $31,000 with smaller chances to clear the $35,000 for a fresh increase. Over the past week, BTC saw a sharp upwards movement above the $35,000 resistance level against the US dollar with the pair surging over 15% and climbed above the $36,500 level as well.
The price spiked above the $38,000 resistance level and settled above the 100 simple moving average while a new high was formed near the $38,603 before the price started a fresh decline and a sharp drop below the $36,500 and the $36,000 level as well. BTC traded below the 50% fib retracement level from the upwards move at the $29,282 swing low to $38,603 high. The price even tested the $33,000 support level and if it is able to find support near the 61.8% fib retracement level from the $29,282 swing low to the $38,603 high the price could stabilize. The price is now trading near the $34K pivot level and the 100 simple moving average with a key bullish trend line forming and new support of $33,900 on the 4-hour charts of the pair.
If there’s a break below this trend line, the price could continue moving lower at $33,500 with the next major support at $33,000 but more losses could lead to the price at $31,000. If BTC stays above the trend line support, there are chances of another increase above $34,500 but the initial resistance on the upside is close to the $35,000 level. Breaking and closing above the $35,000 resistance will set the pace for another upside move in the upcoming session while the major resistance on the upside is close to the $36,400 level.
The 4-hour MACD for the pair is slowly gaining momentum in the bearish zone while the 4-hour RSI for the pair is above the 50 level. The major support level is set at $33,500 while the major resistnace level is set at $35,000.