Bitcoin Failed To Settle Above Resistance At $35,000

Bitcoin Pulls Back After Strong Rebound

Bitcoin has recently made an attempt to settle above the resistance at $35,000 but failed to develop sufficient upside momentum and pulled back.

Other cryptocurrencies are also moving lower. Ethereum failed to get above the psychologically important $2,000 level and declined below $1,950. XRP has recently moved below the $0.65 level. Dogecoin faced resistance at the 20 EMA at $0.2875 and pulled back towards $0.26.

While the crypto market is currently under some pressure, it should be noted that it has successfully managed to deal with the strong sell-off which was triggered by the crackdown on crypto mining in China.

Leading cryptocurrencies have moved away from their recent lows which indicated that traders were ready to increase purchases at lower levels.

Technical Analysis

Bitcoin settled above $32,000 and made several attempts to settle above the next resistance level at $35,000. RSI remains in the moderate territory, and there is plenty of room to gain additional upside momentum in case the right catalysts emerge.

If Bitcoin settles above $35,000, it will get to the test of the next resistance level which is located at the 20 EMA at $35,900. A move above the resistance at $35,900 will push Bitcoin towards the next resistance at $38,000.

In case Bitcoin manages to settle above the resistance at $38,000, it will move towards the key resistance level which is located near the 50 EMA at $40,000. A test of the $40,000 level will attract many traders, and trading volume will likely increase.

On the support side, the nearest support level for Bitcoin is located at $32,000. A move below this level will be a worrisome development for the bulls as it will indicate that Bitcoin is ready to make another attempt to settle below the key support level at $30,000.  If Bitcoin manages to settle below the support at $30,000, it will gain additional downside momentum and move towards the next support level at the recent lows at $28,800.

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