Bitcoin Tops and Fails Again, What Could Trigger Larger Decline

Yesterday, we saw a decent increase in bitcoin above the $33,500 and $34,000 resistance levels. BTC even climbed above the $34,500 level, but it to extend gains.

A high was formed near $34,676 before the price started a fresh decline. It broke the $34,000 support level and settled below the 100 hourly simple moving . There was also a break below a key bullish trend line with support near $33,900 on the hourly chart of the BTC/USD pair.

The pair spiked below the $33,000 level and traded as low as $32,675. Bitcoin is now correcting losses and trading above $33,000. It is testing the 23.6% Fib retracement level of the recent decline from the $34,676 high to $32,675 low.

The first major resistance is near the $33,500 level and the 100 hourly SMA. The 50% Fib retracement level of the recent decline from the $34,676 high to $32,675 low is also near the $33,600 level.

The main resistance is now near the $34,000 level. A close above the $34,000 level is needed to avoid more downsides in the near term.

More Losses in BTC?

If bitcoin fails to recover above the $33,500 and $34,000 resistance levels, there is a risk of a larger decline. An initial support on the downside is near the $32,650 level.

The first major support is near the $32,500 level. The main support is still near the $32,200 level, below which the price might easily dive towards the $30,000 level.

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