Key Takeaways:
- Bitcoin price is correcting gains from the $28,500 resistance zone.
- BTC/USD is following a rising channel with support at $26,900 on the daily chart.
- The price could start a fresh rally unless there is a close below the 50-day simple moving average (blue).
NEW DELHI (CoinChapter.com) — Bitcoin price faced rejection near the $28,500 resistance. BTC/USD is correcting gains and is about to test crucial support at $26,600.
Bitcoin Price Trims Gains
In the last Bitcoin price prediction, we discussed the importance of the $28,500 resistance zone. The BTC/USD pair failed to continue higher above the $28,500 resistance and started a downside correction.
There was a drop below the $28,200 and $28,000 levels. The bears even pushed it below the $27,500 level, but the price is still well above the 50-day simple moving average (blue). It also tests the upward move’s 50% Fib retracement level from the $24,917 swing low to the $28,611 high.
![Bitcoin price daily chart |](https://coinchapter.com/wp-content/uploads/2023/10/Bitcoin-chart-1-1024x468.png)
It seems like the Israel–Hamas war fueled the recent decline. As per the latest reports, Israel carried out air strikes across Gaza overnight into Wednesday as retaliatory bombing. Recently, an anti-tank missile was launched from Lebanon, reported Israel Defense Forces.
Bitcoin price saw a bearish reaction toward the $27,000 support. It also follows a rising channel with support at $26,900 on the daily chart.
However, BTC is approaching crucial support near $26,600 and the 50-day simple moving average (blue). It is close to the 61.8% Fib retracement level of the upward move from the $24,917 swing low to the $28,611 high.
A close below the $26,600 support might increase selling pressure. The price may decline toward the $25,800 level in the stated case. The next key support is near the $24,900 level, below which the bears might aim a move to $23,500 in the coming days.
Fresh Rally?
Conversely, Bitcoin price could start a fresh increase from the channel support or $26,600. Immediate resistance is near the $27,800 level. The main resistance is now forming near the $28,500 level.
A successful daily close above the $28,500 resistance could stage a strong rally. The price could drift toward the $30,000 level in the stated case. Any more gains might push the price toward the $32,000 resistance zone.
Overall, Bitcoin price is correcting gains amid the Israel–Hamas war. If BTC remains stable above $26,600, it could start a fresh increase. If not, it might continue lower toward $24,900.
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