Key Takeaways:
- Bitcoin price started a fresh decline below the $28,500 support zone.
- BTC/USD traded below a key contracting triangle with support near $28,600 on the 4-hour chart.
- The price might extend its decline toward the $27,150 support region.
NEW DELHI (CoinChapter.com) — Bitcoin price is below $28,500. BTC/USD might find strong bids if it revisits the $27,150 support zone.
Bitcoin Price Plunges Over 5%
Bitcoin price made another attempt to clear the $30,000 resistance zone this past week. However, the BTC/USD pair failed to gain strength and reacted to the downside from the $29,847 high.
The bears pushed the price below the $28,800 and $28,500 support levels. More importantly, the price traded below a key contracting triangle with support near $28,600 on the 4-hour chart. The recent breakdown in Bitcoin also dented altcoins such as Ethereum, BNB, and MATIC.
The price trades below the 50 simple moving average (4 hours, blue) and the 76.4% Fib retracement level of the upward move from the $27,692 swing low to the $29,847 high.
On the downside, the first major support is near the $27,700 level. The next key support sits near the $27,150 level. It is a multi-touch zone and coincides with the 1.236 Fib extension level of the upward move from the $27,692 swing low to the $29,847 high.
A close below the $27,150 support could initiate a major decline. In the stated case, there is a risk of a drop toward the $26,200 support.
Dips Limited Below $27,150?
If the bulls remain active above $27,150, Bitcoin’s price might increase. On the upside, immediate resistance is near the $28,200 level.
The next key resistance is visible near the $28,750 level and the 50 simple moving average (4 hours, blue). Finally, the first major resistance is near the $29,000 level and the 50 simple moving average (4 hours, blue).
A close above the $29,000 level might send the price toward the main hurdle at $30,000, above which the bulls may perhaps aim a move toward the $31,200 resistance.
Overall, Bitcoin price is clearing, signaling more losses below the $27,750 support zone. However, BTC might find bids near $27,150. If it stays above $27,150, there could be a decent recovery wave. Conversely, the price might drop to $26,200 or even $25,000 in the coming days.
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