Cryptoanalysis: Bitcoin struggles to cross $35,000

Bitcoin has performed fantastically in recent days. The market leader managed such a rapid increase at the beginning of the week that it rose from $30,000 to $35,000 in just a few hours. Since then, the coin has encountered resistance, but that doesn’t mean the rally should end there. Let’s look at the graphs.

What supports are there?

First we take the well-known weekly chart. Here we see, as usual, the main price levels at $30,500 (gray zone), $25,000 (black line) and $19,800 (orange line). Fortunately, we are close to parting ways with this support as Bitcoin is currently trading around $34,000.

However, it is important to be clear about these price levels. In the event of a sudden and sharp drop, these values ​​must be taken into account. But fortunately, this scenario is increasingly remote. Bitcoin has been unstoppable since rising past the $25,000 black mark.

Resistance at $35,000

Can Bitcoin go even higher or is the fun over? To answer this question, let’s look at the 1-hour chart instead of the weekly chart. Below is each candle listed for 60 minutes, giving us the best overview of the latest moves.

As you can see, here we see a green zone ($35,000) and a blue line at $33,200. The green zone is where resistance is currently forming and the blue line is the previous low. These are small patterns that are not visible on the weekly chart, but can be very important in the short term.

Clearly, $35,000 is now acting as resistance, but the price continues to make higher lows below. This is a positive sign indicating buyers are buying higher – although many sell orders were filled at $35,000.

As long as the price does not fall below $33,200, BTC is likely to break the green zone soon. When this happens, the path forward will be clear. But if the blue line at the bottom is broken, it’s a different story. In principle, the gray zone could provide support, but it is $4,000 below the current price.