Bitcoin price is indicating a potential decline, with $27,200 being the critical level.
Bitcoin price is indicating a potential decline, with $27,200 being the critical level.
Bitcoin Price Struggles to Rise Above Resistance as More Losses Loom
The blockchain industry has been closely following the price of Bitcoin as it struggles to rise above the resistance zone of $27,800. The current market conditions indicate that Bitcoin may extend its decline if there is a clear move below the support zone of $27,200.
Bitcoin attempted a fresh increase from the support zone of $27,200 after experiencing a downside correction. The price managed to recover above the resistance zone of $27,500, climbing above the 50% Fibonacci retracement level of the downward move from the swing high of $28,565 to the low of $27,189. However, the bears remained active near the resistance zone of $28,000, hindering further upward momentum. The price struggled to settle above the $27,850 level.
Unfortunately, Bitcoin faced rejection near the 61.8% Fibonacci retracement level of the downward move from the swing high of $28,565 to the low of $27,189. Consequently, it experienced a fresh decline below $27,500. Additionally, a key rising channel with support near $27,650 was broken on the hourly chart of the BTC/USD pair. Currently, the bulls are defending the $27,200 support zone, keeping the price below $27,700 and the 100 hourly Simple Moving Average.
Source: BTCUSD on TradingView.com
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Immediate resistance on the upside for Bitcoin is near the level of $27,650, followed by the key resistance level of $28,000. A close above the $28,000 resistance could potentially trigger another upward movement, with the price possibly rising towards the resistance level of $28,500. If the momentum continues, further gains may lead to a move towards the level of $29,200.
However, if Bitcoin fails to break above the resistance zone of $27,800, there could be more losses. Immediate support on the downside is near the level of $27,400, and the next major support level is at $27,200. A break and close below the $27,200 level could push the price further down towards $26,800 in the near term, with the next support level sitting at $26,200.
Technical indicators suggest that the MACD is currently losing pace in the bearish zone, indicating potential downward pressure for Bitcoin. The Relative Strength Index (RSI) for BTC/USD is hovering near the 50 level, indicating a neutral stance in the market.
In summary, Bitcoin’s struggle to surpass the resistance zone of $27,800 has raised concerns about possible further losses in the market. Traders and investors are closely monitoring the price movement, looking for signs of a breakout or a downfall. The next few trading sessions will provide valuable insights into the direction Bitcoin may take, shaping the overall sentiment in the blockchain industry. It is essential for market participants to exercise caution and carefully evaluate the support and resistance levels to make informed decisions.
