Bitcoin crossed the critical $28,500 level against the US dollar, but it soared. BTC’s decline is likely to continue and move towards $27,500 support.
- Bitcoin is trending lower, and there’s a significant resistance in the $29600 area.
- The price currently trades below the $29,000 mark and the 100 hourly simple moving mean.
- A major bearish trend line is emerging with resistance at $29,600 (data feed Kraken).
- It is possible that the pair will continue its downward movement if it falls below $28,500.
Bitcoin price faces selling pressure
The key $30,000 resistance area was not breached by Bitcoin. BTC experienced a new decline, with a dramatic move to the lower $28,500 support area.
Bears drove the price down to $28,000. Even though the price reached $27500 support, a low of $27,505 was formed. There was however a solid recovery, and the price reached above $28,500. Bulls were able to push the price up above $29,000 but struggled close to $29,000.
A major bearish trendline is also emerging with resistance close to $29,600 in the hourly charts of BTC/USD. Bitcoin fell below the 23.6% Fib Retracement level for the upward movement from the $27.505 swing low down to the $29,749 high.
It currently trades below the $29,000 mark and the 100 hourly simplemoving average. Near the $29250 level is immediate resistance. Near the $29,000.00 level is the next significant resistance.
Source: BTCUSD at TradingView.com
Near the $29,750 mark is the main resistance. The 50% Fib level is the retracement of the upward movement from $27,505 low to $29 7,749 high. The price could rise if it moves above the $29750 resistance. If the above is true, then the price might rise towards $30,600.
BTC Losses:
Bitcoin could move lower if it fails to break the $29600 resistance level. Support for the downside lies near $28,650.
At $28,500, the initial major support level is close to. Price could drop further below $28,500 if there is a downside breakout. If this happens, then the price might retest the $27,500 support area.
Indicators technical
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 – $28,500, followed by $27,500.
Major Resistance Levels – $29,600, $29,750 and $30,600.
