Key Takeaways:
- Bitcoin price is gaining bearish momentum below the 50-day simple moving average (blue).
- BTC/USD traded below a key contracting triangle with support at $28,000 on the daily chart.
- The price is diving and might slide toward the $25,000 and $24,000 support levels.
Bitcoin price is moving lower, below $28,000. BTC/USD is signaling a downside break and might drop toward the $24,000 support.
Bitcoin Price Takes Hit
In the past few days, Bitcoin’s price struggled to move above the $29,500 and $30,000 levels. The BTC/USD pair topped near the $30,000 level and recently started a fresh decline.
There was a clear move below the $29,000 and $28,500 support levels. More importantly, on the daily chart, the price traded below a key contracting triangle with support at $28,000. Finally, the bears pushed the price below the key 50-day simple moving average (blue).
It is now showing bearish signs with back-to-back bearish candles. The crypto market is under pressure, and altcoins such as Ethereum, MATIC, ADA, and SOL are down over 10% weekly.
If the bears remain in action, Bitcoin’s price may decline toward the $28,250 support or the 50% Fib retracement level of the main increase from the $19,592 swing low to the $30,968 high.
The next major support is near the $24,000 level. It is close to the 61.8% Fib retracement level of the main increase from the $19,592 swing low to the $30,968 high.
Any more losses could trigger an increase in selling pressure. In the stated case, Bitcoin may perhaps test the $22,500 support. The next breakdown support is seen near the $20,000 level.
Upsides Capped?
Immediate resistance is near the $27,000 level. The next key resistance is near the $28,300 zone and the 50-day simple moving average (blue). If there is a clear move above the $28,300 level, Bitcoin could rise toward the $30,000 resistance.
Any more gains might push the price toward the $31,000 resistance zone. In the stated case, a move toward the $32,500 level is possible.
Overall, Bitcoin price is signaling a bearish breakdown below the $28,000 support and the 50-day simple moving average (blue). If BTC settles below the $26,400 level, there is a risk of a move toward the $25,000 support or even $24,000. Conversely, the price might start a recovery wave toward the $28,300 support.
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