This is not the first time. The king cryptocurrency has found support provided by a short-term ascending trend line that runs until late December 2020. Since then, BTC has seen a return to the $ 32,000 price area. This is also where these lines are traded at the time of writing.
Bitcoin price analysis
So far in January, the token has bounced off this support line three times in the past five days. Will it continue to hold? Not yet known.
Looking at the bigger picture, Bitcoin price remains within the confines of a falling triangle pattern and has fluctuated mainly between $ 33,000 and $ 30,750 over the last five days of trading. One of these limits will have to be broken in the daily time frame to determine the next direction for Bitcoin.
Looking ahead, the initial resistance level is currently at $ 32,500. This is followed by 33,110 (bearish .382 Fib), $ 34,000 and $ 34,450 (bearish .5 Fib). Additional resistance is located at $ 35,000 (the triangle top and yesterday’s high) and $ 35,800 (bearish .618 Fib).
On the other hand, the initial support level lies in the short term rising trend line of $ 31,400. This is followed by support at $ 31,000 with today’s lows 30,760 (short term .786 Fib), 30,000 (base of the descending triangle) and $ 29,630. Further below is $ 28,800 (last week’s lowest level) followed by additional support of $ 26k.
The daily RSI remains in a bearish zone as buyers have not been able to build any momentum after breaking through the previous symmetrical triangle pattern on January 21st.
The cryptocurrency markets are having a bad weekend. Bitcoin fell steeply 9% after failing to overcome the $ 34-35K resistance. The daily bottom was seen at $ 31,130, according to Bitstamp.
Key Support Levels: $ 31,400, $ 31,000, 30,760, $ 30,000 and $ 29,630
Key Resistance Levels: $ 32,500, 33,100, 34,000, 34,450 and $ 35,000