Yesterday Bitcoin bulls started to gain strength and were able to push the price above $35000. But they met sufficient resistance above the level of 35000 and under the influence of the bears, the price of Bitcoin began to decline. At the time of publication, the price of Bitcoin is $34375.
However, thanks to this rally, we see that the BTC/USD pair was able to form a fairly solid support base in the area of 32000. Also just above the area of 33200 is the 100-hour moving average, providing intermediate support for the pair in the case of a decline.
Despite a pullback to the area of 34100, the BTC/USD pair is showing positive signs and may continue to rise if it returns above 35000 today. In the case of a return above 35000, the BTC/USD pair will face resistance around 35500 and 36200. A successful breakout of the level of 36200 will bring the BTC/USD pair to the area of $37000.
If the bulls do not have enough strength to return the BTC/USD pair above the level of 35000, we will see the continuation of the correction that has begun. In this case, the closest support level is at 34000. A decline below the 100-hour SMA at 33200 could send the pair BTC/USD towards 32000.
According to a recent forecast by JPMorgan analysts, they do not exclude that the negative trend may intensify and the BTC/USD pair may be corrected to the area of 25000.
A factor that will increase the pressure on the market may be the sale of funds from the Grayscale bitcoin trust. In this fund the six-month holding period for assets is nearing completion, and investors will most likely try to compensate for their losses by selling cryptocurrencies.
The strengthening of the rate in the middle of this week is of a short-term nature, as the bears still control the market. Therefore, the likelihood of a deep fall now exceeds the chances of continued expansion, JPMorgan said in a report.