Key Takeaways:
- Bitcoin price rallied toward the $30,000 resistance before correcting gains.
- BTC/USD is struggling to clear a connecting bearish trend line with resistance at $29,000 on the daily chart.
- The price must stay above the $28,000 support to continue higher toward $31,550.
NEW DELHI (CoinChapter.com) — Bitcoin (BTC) price spiked toward the $30,000 resistance after fake news of spot ETF approval. BTC/USD trimmed most gains but could still rise above $28,000.
Bitcoin Price Eyes More Upsides
In the last Bitcoin price analysis, we discussed a possible dip toward the $26,500 support zone before a fresh increase. The BTC/USD pair followed the exact path, tested the $26,500 support, and then rallied toward $29,000 and $30,000.
However, the upside was capped at $30,000. Fake news of spot ETF approval spoiled the rally. The price trimmed gains and declined below $29,000. There was a drop below the 50% Fib retracement level of the upward move from the $26,562 swing low to the $30,208 high.
The price is now consolidating above the $28,000 support zone. It is also well above the 50-day simple moving average (blue). The current price action suggests that the recent rally could resume if the bulls remain active above the $28,000 support.
Israel-Hamas War Impact
Looking at the Israel-Hamas war, the EU chief criticized the deadly strike on a Gaza hospital that killed 500 people and said there’s no excuse for hitting a hospital.
Israel denied its involvement, stating that it resulted from a failed rocket launch by Palestinian Islamic Jihad. US President Biden also confirmed that the Gaza Hospital bombing was done by Hamas and Islamic Jihad terrorists.
It seems like the conflict is far from over and might continue to impact commodities and crypto markets. Bitcoin is still holding up well compared to Ethereum. It is now struggling to clear a connecting bearish trend line with resistance at $29,000 on the daily chart.
A clear upside break above the trend line resistance could send the price toward the $30,000 resistance. Any more gains might open the doors for a move toward the $31,550 pivot region in the coming days.
Another Decline in BTC?
If Bitcoin’s price fails to resume its rally above the $29,000 resistance, there is a risk of downside continuation. Immediate support is near the $28,380 level. The first major support is near the 61.8% Fib retracement level of the upward move from the $26,562 swing low to the $30,208 high at $27,950.
A close below the $27,950 support might increase selling pressure. The price may decline toward the $27,400 level in the stated case. The next key support is near the 50-day simple moving average (blue) at $26,800, below which the bears might aim a test of $25,000.
Overall, Bitcoin price is holding gains above the $28000 support amid the Israel–Hamas war. It could start a fresh increase if BTC clears the $29,000 hurdle. If not, it might continue lower toward $26,800.
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