Bitcoin Faces Resistance at $35,000: Will It Break Through or Remain in Consolidation?

• Bitcoin price remains in a consolidation phase above $34,500 and $34,000, struggling to surpass key resistance levels at $35,000 and $35,350.
• The current pattern shows a significant contracting triangle formation with support near $34,250, indicating the potential for a bullish rally above the resistance zone if it is breached successfully.

The prevailing status of Bitcoin’s price showcases a consolidation phase, with the cryptocurrency trading above $34,500 and $34,000 but encountering hurdles to break through critical resistance levels at $35,000 and $35,350.

Bitcoin has been wrestling to gain momentum beyond the $35,000 mark, facing active resistance near $35,250 and $35,350. Recent attempts by the bulls to surpass this resistance have been unsuccessful, resulting in a high of around $35,382 before a corrective downward movement.

As of the latest data feed from Kraken, Bitcoin is currently hovering close to $34,850 and the 100-hourly Simple Moving Average, signaling a significant consolidation. Notably, a central contracting triangle is forming, with support around $34,250 on the hourly chart of the BTC/USD pair.

Analyzing the Market Trends

The triangle’s support coincides with the 76.4% Fibonacci retracement level from the recent swing low of $34,133 to the high of $35,382. This pattern suggests a crucial juncture for Bitcoin’s potential breakout.

The immediate hurdle on the upside is $35,000, with the subsequent resistance at $35,050 or the upper trend line of the forming triangle. A decisive breach above $35,050 could pave the way for a bullish move towards the $35,250 resistance. Further upside momentum might push the price towards $36,000 and potentially to $36,200.

Conversely, if Bitcoin fails to conquer the resistance zone, a downside movement might occur. Initial support rests at the recent low of $34,600, followed by the critical support zone near $34,250 and the triangle’s lower trend line. A breach below $34,250 could instigate further downward movement, potentially testing the $34,000 support level in the short term.