Bitcoin (BTC) Attempts to Regain $34,7000 Support Area

Bitcoin (BTC) has returned to a key support level near $34,700. The price is attempting to restart the climb after revisiting the $30,000 milestone last weekend. 

The future direction of the trend could be determined by regaining this support area or validating it as resistance once more.

The weekly chart of bitcoin

Last week, the Bitcoin price fell to a low of $28,600, a level not seen since January 2021. Shortly after, however, there was a robust rebound and a retest of the $35,000 level.

As a result, on the weekly chart, a hammer candlestick with a lengthy bottom wick (green arrow) appeared. It could be a harbinger of a trend reversal.

Furthermore, Bitcoin did not fall below the weekly support level in the $32,250 area (blue line), indicating that the long-term uptrend structure is still intact.

Although there are signs of a bottoming activity, the weekly technical indicators are bearish:

The RSI is attempting to turn around in the neutral 44-48 range. Simultaneously, the indicator is approaching the long-term support line (blue), which was first certified in December 2018 and then again in March 2020 during the COVID-19 crisis.

The MACD is decreasing fast, although momentum has been waning for the past two weeks, as evidenced by the shorter red bars. The indicator has not yet sunk below zero, as it did in March 2020.

The stochastic oscillator is currently in a bearish zone below the 20 lines, with no signs of a potential rebound.

Triangle descending

The daily chart shows a more positive outlook. The Bitcoin price looks to have formed a descending triangle structure since May 19, with the base of the triangle corresponding to the $30,000 area. Several times, this location has been evaluated and proven as a source of help.

A false breakthrough from this structure occurred on June 13, validating the $40,500 level as resistance and reverting to the range's bottom. Another effort to break out of the triangle and surpass the crucial resistance level at $34,700 is currently underway (blue line).

This level has previously acted as support, but it was verified as resistance on June 24. It also lines up with the aforementioned triangle structure's falling resistance line. A break above this level would allow for a retest of the $40,500 resistance level.

The possibility of a breakout appears to be supported by technical indicators. First, the $28,600 low has aided in the formation of several bullish divergences on the RSI, MACD, and stochastic oscillator. Despite the fact that the price made a lower low, we have rising readings on the basic indicators.

The MACD, on the other hand, has been generating positive momentum bars for the past two days and is approaching the positive territory. The stochastic oscillator has reversed its bearish trend and is now rising in the neutral zone.

The RSI appears to be the most intriguing signal, as it has rejected the slide into bearish territory while reaching the long-term resistance line (orange circle). This line has been challenged four times since January 2021, the most recent being during the aforementioned June 13 false breakthrough. It will be a significant reversal indication if the RSI breaks over this resistance line.