BTC Dive Towards $32K Looks Likely As Bitcoin Struggles Below $38

A BTC dive towards $32K looks possible as the benchmark cryptocurrency struggled below the $38K price range against the US dollar. BTC is now consolidating above $36,000 and remains at a strong risk of a downside break as we can see in today’s bitcoin news.

The price is holding a key support zone at the $35K level and the 100 simple moving average. There’s a major contracting triangle forming with the support near $35500 on the 4-hour charts of the pair with a chance of a new decline if it manages to clear the $35,500 level in the near-term. over the past week, Bitcoin’s price climbed higher above the $38,000 resistance against the US dollar and the pair even spike above $40,000 but failed to continue higher. A new high was formed near these levels and the price settled well above the 100 simple moving average. There was also a fresh decline and the price broke the $38K support, trading below the $36,000 level and formed a new low of $34,319.

The price is consolidating now above the $35,000 level and the 100 simple moving average but it was once rejected near the 61.8% fib retracement level of the decline from $40,036 swing high to the $34,319 low. There’s also a contracting triangle with the support at $35,550 on the 4-hour charts of the pair with triangle support nearing the $35,000 and the breakdown zone with the 100 simple moving average. If there’s a downside break below the $35,500 level and the $35,000 support levels, the price could accelerate lower and the next support on the downside could be met at the $34,000 level. More losses could open the doors for a push to the $32,000 level and the $30,000 level as well in the near-term. A BTC dive towards these lower regions is highly likely but if it manages to stay above the triangle support of $35K and the 100 simple moving average, it could start a fresh increase.

The main resistance on the upside is set at the $38,600 zone and the triangle upper trend line and it nears the 76.4% fib retracement level from the drop at $40,036 swing high to $34,319 low. closing above these levels could open the doors for a stronger surge above $40,000 with the 4-hour MACD for the pair losing momentum in the bullish zone.