Bitcoin dived to $33,000 during the weekend session, pulling the entire market down with it.
Recovery has delayed at $36,000, sending BTC bulls back to the drawing board.
Bitcoin moved further away from $40,000 during the weekend session. The support anticipated at $36,000 did little to stop the losses as Bitcoin stretched the bearish leg to $33,000. A recovery came into the picture, with Bitcoin rising to $36,000.
However, the seller congestion at this level was too intense for the bulls, paving the way for the ongoing retreat. Bitcoin trades at $35,000 at the time of writing amid calls for recovery.
Is Bitcoin going to sustain recovery to $40,000?
The drop to $33,000 saw Bitcoin brush shoulders with the oversold region as observed by the Relative Strength Index (RSI) on the four-hour chart. A reflex recovery tool place, but it was challenging to sustain the uptrend. The RSI could not rise above the midline and currently depicts downward movement for the short term. In other words, the uptrend is proving difficult to sustain.
On the other hand, the Moving Average Convergence Divergence (MACD) may flip bullish in the coming session. This trend momentum tool is in the negative region, but the MACD may rise above the signal line, thus flashing a buy signal. The uptrend will be accentuated by the MACD crossing back into the positive region, perhaps bolstering Bitcoin toward $40,000.
BTC/USD four-hour chart
BTC/USD price chart by Tradingview
Support at $33,000 must hold to avoid further breakdown to $31,000 and $30,000, respectively. On the upside, the hurdle at $36,000 must come down to allow bulls to focus on gains above $40,000.
Bitcoin price intraday levels
Spot rate: $34,835
Support: $33,000 and $31,000
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John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige