TA: Why Bitcoin Price Above $34K Could Start A Strong Surge

Bitcoin price corrected lower, but it remained well bid above $32,000 against the US Dollar. BTC is currently rising, but it must clear the $34,000 resistance for a steady increase.

Bitcoin is slowly gaining momentum above the $33,000 and $33,200 resistance levels.
The price is currently trading above the $33,500 level and the 100 hourly simple moving average.
There is a major declining channel forming with resistance near $34,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could start a strong upward move if it clears the $34,000 resistance level.

Bitcoin Price Is Showing Recovery Signs

There was a downside extension in bitcoin price below the $33,200 support level. BTC even broke the $32,500 support level and the 100 hourly simple moving average. However, the bulls were able to protect the $32,000 support zone.

A low is formed near $32,178 and the price is currently rising. It broke the $32,500 and $33,000 resistance levels. There was also a break above the 23.6% Fib retracement level of the downward move from the $38,612 high to $32,178 low.

Source: BTCUSD on TradingView.com

Bitcoin price is now trading above the $33,500 level and the 100 hourly simple moving average. It is testing the key $34,000 resistance zone. There is also a major declining channel forming with resistance near $34,000 on the hourly chart of the BTC/USD pair.

The channel resistance is close to the 50% Fib retracement level of the downward move from the $38,612 high to $32,178 low. A successful break above the $34,000 resistance level could open the doors for a larger increase in the coming sessions. The next major resistance sits at $35,400, followed by $36,200.

Fresh Dip in BTC?

If bitcoin fails to clear the $34,000 resistance zone, there is a risk of a fresh decline. An initial support is near the $33,000 level. The next major support is near the $32,200 level.

Any more losses could lead the price towards the channel lower trend line at $31,500. If the price fails to stay inside the channel, it could easily dive towards the $30,000 support zone.

Technical indicators:

Hourly MACD – The MACD is slowly gaining pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.

Major Support Levels – $33,000, followed by $32,200.

Major Resistance Levels – $34,000, $35,000 and $35,400.

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