TA: Bitcoin Price Reaches Key Support, Why BTC Could Start Fresh Increase

[RSRS]

Bitcoin price is correcting gains from well above $35,000 against the US Dollar. BTC is approaching a major suppot near $32,350, where the bulls might take a stand.

Bitcoin started a downside correction from the $36,650 zone.
The price is now trading below $34,500 and the 100 hourly simple moving average.
There is a key bearish trend line forming with resistance near $33,800 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair is likely to start a fresh increase as long as there is no close below $32,000.
Bitcoin Price is Approaching Support
Bitcoin failed to stay above the $35,000 support zone and it started a fresh decline. BTC broke the $34,000 support zone to move into a short-term bearish zone.

There was also a break below the 50% Fib retracement level of the upward move from the $30,185 swing low to $36,698 high. It is now trading below $34,500 and the 100 hourly simple moving average. There is also a key bearish trend line forming with resistance near $33,800 on the hourly chart of the BTC/USD pair.

An immediate support on the downside is near the $32,650 level. It is near the 61.8% Fib retracement level of the upward move from the $30,185 swing low to $36,698 high.



Source: BTCUSD on TradingView.com

The next key support is near the $32,000 zone. If there is a downside break below the $32,350 and $32,000 support levels, the price could continue to move down. In the stated case, the price might decline towards the $30,200 zone. Any more losses may possibly push the price towards the $29,000 support zone.

Fresh Increase in BTC?
If bitcoin remains stable above the $32,000 support zone, it could start a fresh increase in the near term. An immediate resistance on the upside is near the $33,800 level and the trend line.

The next key resistance is near $34,000, above which the price could test the 100 hourly SMA at $34,500. Any more gains could lift the price towards the $35,000 resistance. In this case, the bulls could even aim a fresh test of $36,500.

Technical indicators:

Hourly MACD – The MACD is slowly 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 – $32,350, followed by $32,000.

Major Resistance Levels – $33,800, $34,000 and $34,500.

Sourch

[TomPluz]

In my own view, I think it is just a matter of a short time before Bitcoin can start breaking out to $40,000 level and then maybe back to $60,000 at least before the 3rd quarter of 2021 is gonna end. We are still in the accumulation stage and there are now big investors who are using the dip to gain more Bitcoin as they feel that eventually Bitcoin is going to make a big comeback. The sentiment of the market is slowly getting hopeful so let's see if this can be sustained in the next following weeks.

[Review Master]

Looks like, bitcoin break out the resistance level of $34k and now we need to watch out $36.2k resistance level. Also, it could be a fake out for 4H chart if it's again taken correction from $36.2k resistance level. In that time, traders can place short with stop-loss as bitcoin will do the sideways movement for few weeks because of the fuds, IMHO.

[Chita76]

Mining difficulty measures the computational power required to validate Bitcoin transactions and consequently how hard it is to earn new Bitcoin. The network adjusts the difficulty each fortnight to reflect the level of competition among miners. Lower mining difficulty indicates less competition.