Bitcoin Price Plunge Due to Binance’s Settlement Could Be ‘Buy Dips’ – Here’s Why

Bitcoin price declined over 4% and traded below the $36,500 support. BTC is still holding the key $35,650 support zone and dips might attract buyers.

Bitcoin started a fresh decline after reports of Binance’s settlement and CZ stepping down.
The price is trading below $37,000 and the 100 hourly Simple moving average.
There was a break below a key bullish trend line with support near $36,980 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could struggle in the short term, but dips might be attractive to the bulls.

Bitcoin Price Takes Hit

Bitcoin price failed to continue higher above the $37,800 resistance zone. BTC formed a short-term top and started a fresh decline after reports of Binance’s settlement and CZ stepping down.

There was a sharp decline below the $37,000 level. There was a break below a key bullish trend line with support near $36,980 on the hourly chart of the BTC/USD pair. The pair even broke the $36,500 support zone. Finally, it spiked below the $36,000 level.

A low is formed near $35,645 and the price is now consolidating losses. It recovered above the 23.6% Fib retracement level of the downward move from the $37,777 swing high to the $35,645 low.

Bitcoin is now trading below $37,000 and the 100 hourly Simple moving average. On the upside, immediate resistance is near the $36,500 level. The main resistance is now forming near the $36,700 level or the 50% Fib retracement level of the downward move from the $37,777 swing high to the $35,645 low.

Source: BTCUSD on TradingView.com

A close above the $36,700 resistance might start a decent increase. The next key resistance could be near $37,000. A clear move above the $37,000 resistance could send the price further higher toward the $37,500 level. In the stated case, it could even test the $37,800 resistance.

More Losses In BTC?

If Bitcoin fails to rise above the $36,700 resistance zone, it could start a fresh decline. Immediate support on the downside is near the $36,000 level.

The next major support is $35,650. If there is a move below $35,650, there is a risk of more downsides. In the stated case, the price could drop toward the $34,700 support in the near term. The next key support or target could be $34,200.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bearish zone.

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

Major Support Levels – $36,000, followed by $35,650.

Major Resistance Levels – $36,500, $36,700, and $37,000.

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