Bitcoin Price Analysis: Acceptance above this key level is critical to recapturing $35,000
- Bitcoin remains trapped between two key averages on the 4H chart.
- BTC price sees a minor bounce, closes in on the $34,000 barrier.
- Bullish RSI suggests additional bullish potential, as $35,000 beckons.
Bitcoin is reversing the previous losses on Sunday, as the bulls look to resume the recent recovery momentum from two-week lows of $32,114 reached on July 8.
On July 9, BTC bulls remained defiant to the warning issued by Tesla Inc.’s CEO Elon Musk, as the price staged an impressive bounce. Musk tweeted out that the transaction rate was "slow" and cost "high” for Bitcoin and Ethereum.
However, sellers continued to lurk above the $34,000 barrier, keeping the upside attempts in check. At the press time, BTC/USD is holding the higher ground around 33,800, up nearly 1% on a daily basis.
Bitcoin challenges key hurdle on the road to recovery
As observed on the four-hour chart, the BTC price is approaching a powerful resistance around $34,000, where the horizontal 50 and 100-Simple Moving Averages (SMA) coincide.
A four-hourly candlestick closing above that level could offer the much-needed boost to the BTC bulls, opening gates towards the downward-sloping 200-SMA at $34,989.
Up next, the July 4 top of $35,953 could guard the advances. The bullish potential is backed by the Relative Strength Index (RSI), which holds above the midline on the said time frame, currently at 52.59.
BTC/USD: Four-hour chart
On the flip side, if BTC price faces rejection at the $34,000 upside barrier, then the bears could knock off the rates towards the mildly bullish 21-SMA at $33,334.
That level intersects with the rising trendline support, connecting the recent higher lows.
The next significant downside target awaits at the two-week troughs of $32,114.
BTC/USD additional levels
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
