Key Takeaways:
- Bitcoin price is struggling to remain in a positive zone above $28,000.
- BTC/USD follows a rising channel with support at $27,650 on the daily chart.
- The price could correct lower if it continues to face resistance near $28,800.
Bitcoin price is struggling to rise further above $28,800. BTC/USD might correct sharply lower if a downside break below $27,700.
Bitcoin Price Faces Resistance
In the past few days, Bitcoin’s price increased significantly above the $27,000 resistance zone. The BTC/USD pair climbed above the $27,500 level to move into a positive zone.
The pair settled above the $28,000 resistance zone and the 50-day simple moving average (blue). However, the bulls seem to be facing strong resistance near the $28,800 level. Conversely, Ethereum saw a bullish break above the $1,850 and $1,880 resistance levels, suggesting weakness in Bitcoin dominance.
The recent high was around $29,171, and the price is now consolidating gains. The price seems to follow a rising channel with support at $27,650 on the daily chart.
Similar patterns are visible on the daily chart, followed by a short-term decline. If the bulls continue to struggle near the $28,800 resistance, there is a risk of a downside break below the channel trend line at $27,700.
The next major support is near the $27,000 level or the 23.6% Fib retracement level of the upward move from the $19,592 swing low to the $29,171 high.
The main support is now forming near the $25,000 level or the 50-day simple moving average (blue). It is close to the 50% Fib retracement level of the upward move from the $19,592 swing low to the $29,171 high. Any more losses could trigger a sustained decline.
The price may test the $21,800 support in the stated case.
More Gains?
Conversely, the Bitcoin price could clear the $28,800 resistance and climb further. Immediate resistance is near the $29,200 level. The next key resistance is near the $30,000 level.
If a clear move is above the $30,000 level, the price could rise toward the $31,500 resistance soon. Any more gains might push the price toward the $32,000 resistance zone. In the stated case, a run toward the $32,650 level is possible.
Overall, Bitcoin price is showing signs of exhaustion above the $28,000 level. If BTC continues to struggle near $28,800, there could be a bearish reaction. Conversely, the price may rise steadily and might soon test $30,000.
The post Bitcoin Price Shows Signs of Exhaustion, Why BTC Could Take A Hit appeared first on CoinChapter.
