Key Takeaways:
- Bitcoin price is struggling to clear the $28,750 resistance zone.
- BTC/USD is following a key contracting triangle with resistance near $28,000 on the 4-hours chart.
- The price might start a major downside correction if it breaks the $27,000 support.
Bitcoin price is struggling below $28,750. BTC/USD could face an increase in selling if it breaks the $27,000 and $26,000 support levels.
Bitcoin Price Consolidates Gains
After a strong increase above the $27,000 level, Bitcoin price attempted more gains above the $28,000 level. Finally, the BTC/USD pair climbed above the $28,500 resistance zone but failed to continue higher.
The bears remained active near the $28,650 and $28,750 levels. A high was formed near $28,818 before the price started a consolidation phase. A minor downside correction was below the $28,200 and $28,000 levels.
There was a bearish reaction below the 23.6% Fib retracement level of the upward move from the $23,931 swing low to the $28,818 high.
However, the price remained positive and above $26,500, similar to Ethereum, Cardano, and XRP. BTC price is now trading well above $26,500 and the 50 simple moving average (4 hours, blue).
It also follows a key contracting triangle with resistance near $28,000 on the 4-hours chart. On the upside, immediate resistance is near the $28,100 level and the triangle region. The first major resistance is near the $28,450 level.
The main breakout zone is forming near the $28,750 level. A close above the $28,750 level might start another steady increase. The next major resistance might be near the $30,000 level. Any more gains might send the price toward the $32,000 resistance zone in the coming days.
Bearish Break?
If there is no move above $28,000 and $28,450, Bitcoin price might react to the downside. On the downside, the first major support is near the $27,400 level and the triangle lower trend line.
The next key support sits near the $26,500 level or the 50% Fib retracement level of the upward move from the $23,931 swing low to the $28,818 high.
A clear move below the $26,500 support could result in more bearish moves. The next major support is near the $25,080 zone, below which there is a risk of a move toward the $24,000 support zone. Any more gains could set the pace for a drop toward $21,500.
Overall, Bitcoin price is struggling to clear the $28,450 resistance and might dive below the 50 simple moving average (4 hours, blue). If BTC breaks the $26,500 support, it could spark bearish moves. Conversely, it may perhaps clear $28,450 and rally to $30,000.
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