Bitcoin Struggles to Break Resistance
Bitcoin is facing challenges in surpassing the $27,800 resistance zone, hindering its ability to start a fresh increase. Currently, the price is trading below both $27,700 and the 100-hourly Simple Moving Average. On the hourly chart of the BTC/USD pair, there was a break below a crucial rising channel with support around $27,650. If the price fails to hold above the $27,200 support level, it could potentially experience another decline.
Bitcoin Price Faces Uphill Task
After experiencing a downside correction, Bitcoin attempted to recover from the $27,200 support zone. It managed to climb above the $27,500 resistance zone and even surpassed the 50% Fibonacci retracement level of the downward move from $28,565 to $27,189. However, the bears remained active near the $28,000 resistance area, causing the price to struggle in settling above $27,850.
Bitcoin was rejected near the 61.8% Fibonacci retracement level and subsequently saw a decline below $27,500. Additionally, there was a break below a key rising channel with support around $27,650 on the BTC/USD hourly chart. The price is now trading below $27,700 and the 100-hourly Simple Moving Average.
Source: BTCUSD on TradingView.com
Potential for More Losses in BTC?
If Bitcoin fails to break above the $27,800 resistance level, it may experience further losses. Immediate support on the downside can be found around $27,400, followed by a major support level near $27,200. Should the price break and close below $27,200, it could potentially drop even lower towards $26,800 in the near future. Another support level to watch out for is at $26,200.
Technical Indicators
The MACD on the hourly chart is now losing momentum in the bearish zone. The Relative Strength Index (RSI) for BTC/USD is currently hovering around the 50 level.
Hot Take: Bitcoin Faces Resistance at $28,000
Bitcoin’s price struggles to gain momentum above the $27,800 resistance level. While there was an attempt to recover from the support zone of $27,200, it failed to surpass the resistance near $28,000. The bears remain active and if the price fails to hold above the support at $27,200, it may experience further declines. On the upside, a breakthrough above $28,000 could signal another increase in price towards $28,500 and potentially even higher levels.
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