Bitcoin Struggles to Break Above $28,500 Level
The price of Bitcoin is currently facing challenges in its attempt to surpass the $28,500 resistance level. Despite trading above $27,750 and the 100 hourly Simple Moving Average (SMA), there was a recent break below a crucial bullish trend line with support near $28,400 on the BTC/USD pair’s hourly chart.
Bitcoin Price Extends Downside Correction
Bitcoin experienced a downside correction after encountering resistance around the $30,000 zone. The cryptocurrency struggled to maintain a positive trend and settled below the pivotal level of $28,500.
Bears exerted pressure and pushed the price below $28,200. Additionally, there was a break below a significant bullish trend line with support around $28,400 on the BTC/USD pair’s hourly chart. The price reached a low near $28,150 and is currently consolidating its losses.
Bitcoin is now trading above $27,750 and the 100 hourly SMA. On the upside, immediate resistance can be found near the $28,550 level. This level closely aligns with the 50% Fibonacci retracement level of the recent decline from the swing high of $28,980 to the low of $28,150.
The next crucial resistance level could be around $28,800 or the 76.4% Fibonacci retracement level of the recent decline.
Source: BTCUSD on TradingView.com
The primary resistance now lies near the $29,000 zone. A clear breakthrough above this level could pave the way for a larger increase, with the next key resistance level at $29,500. Further gains might even propel Bitcoin towards the $30,000 mark.
Potential for More Losses in BTC?
If Bitcoin fails to surpass the resistance zone at $28,550, there is a possibility of further decline. Immediate support on the downside can be found near the $28,150 level.
The next significant support level is around $28,000 and the 100 hourly SMA. A break below and close below this support level at $28,000 could trigger additional losses in the near term. The subsequent support sits at $27,660, and if breached, Bitcoin could test $28,120.
Technical Indicators
– Hourly MACD: The MACD is currently showing an increasing bearish trend.
– Hourly RSI (Relative Strength Index): The RSI for BTC/USD is now below the 50 level.
Major Support Levels: $28,150, followed by $28,000
Major Resistance Levels: $28,550, $28,800, and $29,000
Hot Take: Bitcoin Faces Resistance in Breaking Through Key Level
Bitcoin is encountering hurdles as it strives to surpass the critical resistance level at $28,500. Despite trading above certain levels and moving averages, a recent break below a bullish trend line has hindered its progress. The cryptocurrency’s price experienced a downside correction from its resistance at $30,000 and settled below the pivotal point of $28,500. If it fails to break through the resistance zone at $28,550, further declines may occur. On the other hand, a clear breakthrough above the key resistance level at $29,000 could pave the way for a larger increase.
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