• Bitcoin price faces a growing bearish grip after failing to settle above the immediate resistance at $34,000.
• The bellwether cryptocurrency is on the verge of a breakdown to $30,000, mostly if the immediate support at $32,000 caves.

Bitcoin has managed to recover from the recent 20% dump from the new all-time high at $34,807 to $27,681. The flagship cryptocurrency continues to outperform other digital assets. At the time of writing, BTC is teetering at $33,950.

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On the upside, Bitcoin is facing resistance at a weekly high established at $34,511. The Relative Strength Index (RSI) clearly shows that BTC/USD is not oversold, but the bearish is grip is intensifying all the same.

If the bellwether cryptocurrency fails to break above the immediate hurdle at $34,000, declines towards $30,000 will likely come into the picture. Moreover, its bearish leg could be emphasized if the RSI’s divergence remains bearish.

The bearish divergence occurs when the RSI forms a series of lower highs while the asset’s price creates higher lows. In technical analysis, the pattern is interpreted to be strongly bearish because it shows a decrease in trading volume while signaling an impending reversal.

Similarly, the 4-hour chart suggests that bears will gain more control over the price if Bitcoin closes the day under $34,000. On the downside, initial support is envisaged at $32,000. If declines stretch further down, the flagship cryptocurrency may seek anchorage at the 50 Simple Moving Average (SMA), currently at $30,278.

BTC/USD 4-hour chart

It is worth mentioning that the bearish outlook will be invalidated if BTC/USD resumes the uptrend and closes the day above $34,000. Moreover, buyers will be encouraged to join the market and push Bitcoin above the weekly high at $34,511. Addition price action above this level could elevate Bitcoin to new all-time highs above $40,000.

Bitcoin intraday levels

Spot rate: $33,640

Relative change: -364

Percentage change: -1%

Trend: Bearish

Volatility: Expanding

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John Isige

John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige