Bitcoin Retests $32,000, Why A Dips Still Remains Attractive For The Short Term

Bitcoin started a new rally and surpassed $31,000 against the US Dollar. BTC could correct gains but dips could remain well supported above $30,800.

Key takeaways

• Bitcoin is gaining pace above the $30,500 and $31,000 resistance levels.
• The price is now trading above the $31,000 level and the 100 hourly simple moving average.
• There is a connecting uptrend line forming with support near $31,250 on the hourly chart of the BTC/USD pair (data feed by Kraken).
• The pair could surge higher if it breaks the $32,200 resistance zone.

Bitcoin price surges 5%

Bitcoin price stayed well above the $30,000 pivot level. It formed a base and started a fresh rise above the $30,500 resistance zone.

The price gained pace above the $31,200 resistance zone and remained well above the 100-hourly simple moving average. Finally, there was a surge above the $32,000 level, and the price traded as high as $32,186. It now corrects gains below $32,000.

There was a move below the 23.6% Fibonacci retracement level from the bullish move from the $30,234 low to the $32,186 high. However, there is a connecting uptrend line forming with support near $31,250 on the hourly chart of the BTC/USD pair.

Immediate resistance on the upside is near $32,200. The next major resistance is near $32,200. A clear move above the $32,200 resistance level might require another rise. In the mentioned case, the price might even eliminate the $32,500 resistance. The next major resistance is near $33,400.

Any retracement levels to look out for?

If bitcoin fails to clear the $32,200 resistance zone, it could start a downside correction. Immediate support on the downside is near $31,500. The first major support is near $31,250 and the trendline. It is near the 50% Fibonacci retracement level of the bullish move from the $30,234 low to the $32,186 high.

A major support is now forming near the $30,800 level. A break below the $30,800 support could put severe pressure on the bulls. In the mentioned case, the price might revisit the $30,000 support zone perhaps in the short term.

Technical Indicators

Hourly MACD – The MACD is now losing momentum in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well above the 60 level.

Major Support Levels – $31,250 followed by $30,800.

Major Resistance Levels – $32,200, $32,200 and $33,400.