Bitcoin Prints Bullish Pattern, Here’s Why 100 SMA Holds The Key

Bitcoin price dived below $30,000 before it started a major recovery against the US Dollar. BTC is back above $32,000, but it must clear the 100 hourly SMA for more gains.

Bitcoin extended its decline below the $30,000 support zone before it started an upside correction.
The price is now trading close to the $34,000 zone and the 100 hourly simple moving average.
There is a major bearish trend line forming with resistance near $35,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair must clear the 100 hourly SMA and $35,000 to move into a bullish zone in the near term.

Bitcoin Price Starts Recovery
Bitcoin struggled to stay above the $32,000 support and it extended its decline. BTC broke the main $30,500 and $30,000 support levels to move further into a bearish zone.
The price even spiked below the $29,000 level and settled well below the 100 hourly simple moving average. It traded as low as $28,822 and it recently started an upside correction. Bitcoin gained pace and it was able to reclaim the $30,000 barrier.
There was also a break above the 50% Fib retracement level of the recent decline from the $36,171 swing high to $28,822 low. It is now trading close to the $34,000 zone and the 100 hourly simple moving average.
An initial resistance on the upside is near the $34,500 level. It is near the 76.4% Fib retracement level of the recent decline from the $36,171 swing high to $28,822 low. The main resistance is still near the $35,000 zone. There is also a major bearish trend line forming with resistance near $35,000 on the hourly chart of the BTC/USD pair.

Source: BTCUSD on TradingView.com
Bitcoin must clear the 100 hourly SMA and then gain pace for a break above the $35,000 barrier to move into a positive zone.
Fresh Decline in BTC?
If bitcoin fails to clear the $34,500 resistance or the trend line resistance, it could start a fresh decline. An immediate support on the downside is near the $33,000 level.
The next major support is near the $32,500 level. A downside break below $32,500 could open the doors for a fresh drop towards the $30,000 zone in the coming sessions.
Technical indicators:
Hourly MACD – The MACD is now moving into the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is back above the 50 level.
Major Support Levels – $33,000, followed by $32,500.
Major Resistance Levels – $34,500, $35,000 and $36,500.

Shakira

I’m a professional writer specializing in the field of cryptocurrencies. My work has been published in numerous online and offline publications which has made me one of the leading authorities in this industry. In addition to my work as an author, I’m also a highly sought-after speaker on the topic of cryptocurrency investing. I have given talks at some of the world’s most prestigious financial institutions, and my advice is regularly featured in the media.