Bitcoin Moves Towards The Support At $32,000
Bitcoin Is Under Pressure After Unsuccessful Test Of Resistance At $35,000
Bitcoin failed to settle above the important resistance level at $35,000 and is moving towards the support at $32,000. This is a worrisome development for the bulls as the resistance at $35,000 has already been tested many times, and Bitcoin failed to develop upside momentum above this level.
Not surprisingly, the whole crypto market found itself under pressure after Bitcoin moved below $35,000. Ethereum faced resistance at the 20 EMA at $2270 and pulled back towards $2150. Dogecoin moved below the important support level at $0.25 and is trying to settle below $0.24. XRP also gained downside momentum and is testing the $0.66 level.
Yesterday, I wrote that Bitcoin needs additional upside catalysts to move above the $35,000 level. At this point, it looks that the path of least resistance is to the downside, so Bitcoin may have a decent chance to gain downside momentum even if additional downside catalysts do not emerge.
Technical Analysis
Bitcoin faced strong resistance near $35,000 and pulled back. Currently, Bitcoin is located in the range between the support at $32,000 and the resistance at $35,000. RSI is in the moderate territory, and there is plenty of room to gain additional downside momentum in case the right catalysts emerge.
In case Bitcoin manages to settle below the low end of the $32,000 – $35,000 range, it will move to the psychologically important support level at $30,000. A successful test of this support level will open the way to the test of the next support which is located at the recent lows at $28,800.
On the upside, Bitcoin needs to settle above the resistance at $35,000 to gain additional upside momentum. If Bitcoin gets above $35,000, it will get to the test of the next resistance at $36,000.
A move above the resistance at $36,000 will open the way to the test of the resistance at $38,000. The 50 EMA is located in the nearby, so Bitcoin will likely face significant resistance near $38,000.
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This article was originally posted on FX Empire
