Key Takeaways:

  • Bitcoin price started a fresh decline below the $28,500 support zone.
  • BTC/USD traded below a key contracting triangle with support near $28,600 on the 4-hour chart.
  • The price might extend its decline toward the $27,150 support region.
Bitcoin Price Breakdown – Start of Another Decline Or Buying Opportunity

NEW DELHI (CoinChapter.com) — Bitcoin price is below $28,500. BTC/USD might find strong bids if it revisits the $27,150 support zone.

Bitcoin Price Plunges Over 5%

Bitcoin price made another attempt to clear the $30,000 resistance zone this past week. However, the BTC/USD pair failed to gain strength and reacted to the downside from the $29,847 high.

The bears pushed the price below the $28,800 and $28,500 support levels. More importantly, the price traded below a key contracting triangle with support near $28,600 on the 4-hour chart. The recent breakdown in Bitcoin also dented altcoins such as Ethereum, BNB, and MATIC.

Bitcoin price 4-hour chart
Bitcoin price 4-hour chart | Source: BTCUSD on TradingView.com

The price trades below the 50 simple moving average (4 hours, blue) and the 76.4% Fib retracement level of the upward move from the $27,692 swing low to the $29,847 high.

On the downside, the first major support is near the $27,700 level. The next key support sits near the $27,150 level. It is a multi-touch zone and coincides with the 1.236 Fib extension level of the upward move from the $27,692 swing low to the $29,847 high.

A close below the $27,150 support could initiate a major decline. In the stated case, there is a risk of a drop toward the $26,200 support.

Dips Limited Below $27,150?

If the bulls remain active above $27,150, Bitcoin’s price might increase. On the upside, immediate resistance is near the $28,200 level.

The next key resistance is visible near the $28,750 level and the 50 simple moving average (4 hours, blue). Finally, the first major resistance is near the $29,000 level and the 50 simple moving average (4 hours, blue).

A close above the $29,000 level might send the price toward the main hurdle at $30,000, above which the bulls may perhaps aim a move toward the $31,200 resistance.

Overall, Bitcoin price is clearing, signaling more losses below the $27,750 support zone. However, BTC might find bids near $27,150. If it stays above $27,150, there could be a decent recovery wave. Conversely, the price might drop to $26,200 or even $25,000 in the coming days.

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