Bitcoin price is correcting lower from the $28,800 zone. BTC might gain bearish momentum if there is a clear move below the $27,500 support.
- Bitcoin started another decline from the $28,800 resistance zone.
- The price is trading below $28,500 and the 100 hourly simple moving average.
- There is a key bearish trend line forming with resistance near $28,100 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could start another increase unless there is a clear move below the $27,500 support.
Bitcoin Price Corrects Lower
Bitcoin price managed to climb further higher above the $28,500 resistance level. However, BTC struggled to gain pace for a move above the $28,800 and $29,000 levels.
The recent swing high was formed near $28,595 before there was a downside correction. The price declined below the $28,200 support level and the 100 hourly simple moving average. The bears pushed the price below the $28,000 support zone.
A low is formed near $27,578 and the price is now consolidating losses. Bitcoin price is now trading above $28,200 and the 100 hourly simple moving average. There is also a key bearish trend line forming with resistance near $28,100 on the hourly chart of the BTC/USD pair.
An immediate resistance is near the $27,820 level. It is near the 23.6% Fib retracement level of the downward move from the $28,595 swing high to $27,578 low.
Source: BTCUSD on TradingView.com
The next major resistance is near the $28,100 zone and the trend line. It is close to the 50% Fib retracement level of the downward move from the $28,595 swing high to $27,578 low. The main resistance is now forming near the $28,800 level. A clear move above the $28,800 level might pump the price towards the $29,200 resistance. Any more gains might call for a test of the $30,000 resistance zone.
More Losses in BTC?
If bitcoin price fails to clear the $28,100 resistance, it could start another decline. An immediate support on the downside is near the $27,600 zone.
The next major support is near the $27,500 zone. A downside break below the $27,500 support might spark a fresh decline. The next major support is near the $27,000 level, below which the price might test $26,600.
Technical indicators:
Hourly MACD – The MACD is now gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major Support Levels – $27,500, followed by $27,000.
Major Resistance Levels – $28,100, $28,500 and $28,800.
