Bitcoin price holds above critical support at $36,788 as Binance CEO CZ begins BTC halving countdown

●Bitcoin price is holding thinly above critical support at $36,788, shy of $38,000 despite broader market optimism.

●BTC could drop below the $33,000 level with analysts anticipating double-digital losses for the king of crypto.

●Invalidation of the bullish thesis will occur once the people’s crypto decisively clears the $37,980 range high and tests $40,000.

Bitcoin narrative plays on as Binance CEO CZ begins BTC halving countdown

Bitcoin (BTC) remains a hot topic on social media site X despite the US Securities & Exchange Commission (SEC) missing its eight-day window to approve spot BTC exchange-traded funds (ETFs). Instead, a new narrative for the delays has arrived, pointing to the financial regulator’s preference that the ETFs do cash creates rather than crypto and is reportedly engaging with exchanges.

Now that the ETF narrative is shelved to be revisited in January, the focus has shifted to next the Bitcoin halving, due in April 2024. Binance CEO Changpeng Zhao has joined the countdown, indicating his keenness on the date in a post on X.

The post has been received well by the community, pointing to anticipation for the event that is expected to kick-start the next bull cycle.

Bitcoin Price uptrend threatened as BTC holders cling to any signal

Bitcoin price is holding thinly above critical support at $36,788 after a foray into the supply zone extending from $36,276 to $37,301. For a continued uptrend, the price must decisively move above this level and clear the $37,972 resistance level.

Until then, the upside potential for Bitcoin price remains under threat, with the Relative Strength Index (RSI) flattened out. The Awesome Oscillator (AO) is also supporting the gloomy outlook, with its histogram bars taking on a red feel and edging toward the midline. If this goes on, the AO could soon flip negative.

Increased selling pressure could see Bitcoin price flip below the $36,788 support level and potentially fall below the ascending trendline to test the $35,410 support level. In a dire case, the slump could extend to the $34,000 psychological level, while BTC collects the buy-side liquidity (BSL on the chart) residing underneath.

However, to confirm a prolonged downtrend Bitcoin price must break and close below the $30,824 midline of the supply zone (now serving as a bullish breaker) extending from $30,126 to $31,524. If this level fails to hold as support, BTC could slide all the way to $29,753.

BTC/USDT 1-day chart, Source: TradingView.

On the flipside, increased buying pressure could see Bitcoin price clear the $37,972 local top to test the $37,972 range high. In a highly bullish case, the gains could extend for BTC to test the $40,000 psychological level, almost 10% above the current price.