Key Takeaways:
- Bitcoin price is correcting gains from the $28,500 resistance zone.
- BTC/USD is following a rising channel with support at $26,900 on the daily chart.
- The price could start a fresh rally unless there is a close below the 50-day simple moving average (blue).
NEW DELHI (CoinChapter.com) — Bitcoin price faced rejection near the $28,500 resistance. BTC/USD is correcting gains and is about to test crucial support at $26,600.
Bitcoin Price Trims Gains
In the last Bitcoin price prediction, we discussed the importance of the $28,500 resistance zone. The BTC/USD pair failed to continue higher above the $28,500 resistance and started a downside correction.
There was a drop below the $28,200 and $28,000 levels. The bears even pushed it below the $27,500 level, but the price is still well above the 50-day simple moving average (blue). It also tests the upward move’s 50% Fib retracement level from the $24,917 swing low to the $28,611 high.
It seems like the Israel–Hamas war fueled the recent decline. As per the latest reports, Israel carried out air strikes across Gaza overnight into Wednesday as retaliatory bombing. Recently, an anti-tank missile was launched from Lebanon, reported Israel Defense Forces.
An anti-tank missile was launched from Lebanon toward a military post adjacent to the community of Arab Al-Aramshe on the #BlueLine.
— Israel Defense Forces (@IDF) October 11, 2023
Bitcoin price saw a bearish reaction toward the $27,000 support. It also follows a rising channel with support at $26,900 on the daily chart.
However, BTC is approaching crucial support near $26,600 and the 50-day simple moving average (blue). It is close to the 61.8% Fib retracement level of the upward move from the $24,917 swing low to the $28,611 high.
A close below the $26,600 support might increase selling pressure. The price may decline toward the $25,800 level in the stated case. The next key support is near the $24,900 level, below which the bears might aim a move to $23,500 in the coming days.
Fresh Rally?
Conversely, Bitcoin price could start a fresh increase from the channel support or $26,600. Immediate resistance is near the $27,800 level. The main resistance is now forming near the $28,500 level.
A successful daily close above the $28,500 resistance could stage a strong rally. The price could drift toward the $30,000 level in the stated case. Any more gains might push the price toward the $32,000 resistance zone.
Overall, Bitcoin price is correcting gains amid the Israel–Hamas war. If BTC remains stable above $26,600, it could start a fresh increase. If not, it might continue lower toward $24,900.
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