Bitcoin price increased from $ 32,800 to over $ 2,000, reaching its daily high of $ 34,900. However, at the time of writing these lines, BTC failed to hold on and pulled below the critical $ 34,000 resistance level.
Bitcoin failed to close the 4-hour candle the short-term drop on resistance at the .5 Fib Retracement level at $ 34,450. As of now, it has difficulty in protecting the critical area of 34 thousand dollars.
Will Bitcoin continue to rise?
Looking at the bigger picture, Bitcoin has recovered nicely in the past 24 hours after another test of the $ 30,000 – $ 31,000 support area. On the longer scale, we can expect the lower price areas to be retested if Bitcoin loses significant support in the $ 30k range. 26 thousand dollars and even 24 thousand dollars are among the possibilities.
To continue the uptrend, Bitcoin will need to break $ 34,450 to target major resistance at the upper angle of the bearish triangle, as can be seen in the daily chart below.
Critical levels to watch
Looking ahead, the initial resistance level comes at $ 34,000, followed by $ 34,450 (bearish .5 Fib). Further up lies $ 35,000, 35,500 (upper angle of the triangle) and $ 35,800 (bearish .618 Fib).
On the other hand, the initial support level is $ 33,100 (yesterday’s low). This is followed by 32,500 (long term .5 Fib), 32,000, 31,000 and $ 30,760 (short term .786 Fib and yesterday low). Further below lies support at 30,000 (base of the descending triangle), 29,630 (.5 Fib) and $ 29,000.
The daily RSI is back to the midline and shows indecision in the BTC market.
Key Support Levels: $ 33,100, 32,500, 32,000, 31,000 and $ 30,760
Key Resistance Levels: $ 34,000, $ 34,450, $ 35,000, $ 35,500 – $ 35,800 and $ 37,900