Key Takeaways:
- Bitcoin price faces resistance near the 50-day simple moving average.
- BTC/USD is still below a key bearish trend line with resistance near $28,350 on the daily chart.
- The price could continue higher only if it clears the trend line resistance.
NEW DELHI (CoinChapter.com) — Bitcoin price jumped 5% but faced resistance near $28,350. BTC/USD could face rejection if it stays below $28,350 and $28,500.
Bitcoin Price Attempts Fresh Increase
This past week, Bitcoin price extended its decline below the $27,000 level. The BTC/USD pair even broke the $26,500 support and spiked below $26,000.
However, the bulls remained active near the key $25,800 support zone. A low was formed near $28,850, and the price increased significantly. There was a clear move above the $27,200 and $27,500 resistance levels.
The bulls pumped the price above the 50% Fib retracement level of the downward move from the $29,847 swing high to the $28,857 low. It gained 5% and dragged Ethereum higher as well.
However, Bitcoin price ran into a major resistance near the 50-day simple moving average (blue). The price also struggles to clear a key bearish trend line with resistance near $28,350 on the daily chart. The trend line is close to the 61.8% Fib retracement level of the downward move from the $29,847 swing high to the $28,857 low.
BTC must settle above the $28,350 and $28,500 resistance levels to continue higher. The next key resistance is near the $28,850 zone. If a clear move is above the $28,850 level, the price could rise toward the $30,000 resistance.
Any more gains might push the price toward the $31,000 resistance zone.
Another Rejection?
If there is no upside break above $28,500, Bitcoin could start another decline below $27,500. The first major support is nearly $27,000. The next major support is near the $25,850 level.
Any more losses could trigger a sharp decline toward $25,000. In the stated case, there is also a risk of a move toward the $24,200 support in the coming days.
Overall, Bitcoin price is eyeing a crucial upside break above $28,500 and the 50-day simple moving average (blue). If BTC succeeds, a sustained move could be toward the $30,000 resistance. Conversely, the price might start another bearish wave and revisit the $25,850 support zone or even lower soon.
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