Bitcoin price is trying to break the $28,200 resistance. BTC is moving lower again and may drop towards the $27,000 support zone.
- Bitcoin tried to break above $28,200 but failed.
- The price is trading below $28,000 and the 100 hourly simple moving average.
- There is a converging bearish trendline with resistance near $28,000 on the hourly chart of the BTC/USD pair (data source from Kraken).
- The pair could continue to move lower if it remains below $28,000 and $28,200.
Bitcoin price faces rejection
Bitcoin price started a wave of recovery above the $27,800 level. BTC cleaned up $28,000 resistance zone and shot above the 100 hourly simple moving average.
However, the bears were active above the $28,200 resistance. A high was made near $28,334 and the price dropped to $27,000. A low is forming near $26,792 and the price is now consolidating. It is trading near the 50% Fib retracement level that recently dropped from $28,334 to a low of $26,792.
Bitcoin is trading below $28,000 and 100 Hours Simple Moving Average. There is also a converging bearish trend line with resistance near $28,000 on the hourly chart of the BTC/USD pair.
Immediate resistance is near the $27,750 level. Another major resistance is near the $28,000 level or the trend line. It is near the 76.4% Fib retracement level of the recent decline from the $28,334 swing low to $26,792. Major resistance is now forming near the $28,200 level and the 100 hourly simple moving average.
Source: BTCUSD on TradingView.com
A close above the $28,200 resistance could trigger a decent rally. Another key resistance is near $28,500, above which the price could climb to the $29,200 resistance. Any further gains could open the door for a decent move towards the $29,500 resistance.
Another BTC decline?
If the Bitcoin price fails to clear the $28,000 resistance, it may continue to move lower. Immediate downside support is near the $27,200 level.
Another major support is near the $27,000 zone, below which the price could move further into the bearish zone. In that case, it could return to the $26,500 level. Any further losses could push Bitcoin towards the $26,200 level in the near term.
Technical indicators:
Hourly MACD – MACD is now losing momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – RSI for BTC/USD is now below the 50 level.
Major support levels – $27,200, followed by $27,000.
Major resistance levels – $28,000, $28,200 and $28,500.
