Bitcoin price continues to decline after it hit $36500 on June 29th. Thus, the BTC/USD pair broke down the short-term upward channel, which began to form last week and began to form a new downward channel on the hourly chart.
Now the bulls are faced with the task to protect the support level of 32650, which is also the Fibonacci retracement level of 0,618.
If you look at the daily chart of the BTC/USD pair, you can see that since May 22, it has been moving within a range limited by the levels of 31000 and 4000. Thus, continuing the 5-week phase of consolidation. And if the bears do seize the initiative and push the price of Bitcoin below the range, the level of 29000 will play a critical role in protecting the bulls from moving forward. Otherwise, the BTC price is likely to drop to $20000.
However, apart from the consolidation range, the BTC/USD pair also formed a double bottom on the daily chart. Then the pair was able to reach this week's high of 36500. However, this level provided enough resistance, which led to the current price of Bitcoin.
On the 4-hour chart, it is better seen than after exiting the double bottom, the BTC/USD pair formed a short-term upward channel, after which it collided with the level of 36500.
The short-term outlook for Bitcoin remains neutral, and for it to become bullish, the price needs to rise above $42000. On the other hand, a daily close below $30000 would make the short-term outlook bearish.
In case of breakdown of support at 32650, the bulls have insurance in the areas of 32000, 31500. If the bulls again take the market into their own hands, then on the way to the level of 36500 they will need to overcome the resistance level of 34000 dollars.
Looking into the future, it can be said that it will be difficult for bulls to overcome resistance in the areas of 39000, 40000 dollars.