Bitcoin rose below the key support area of $28,500 against the US Dollar. BTC is declining and may continue to move lower towards the $27,500 support.
- Bitcoin is moving lower and is facing significant resistance near the $29,600 region.
- The price is now trading below the $29,000 level and the 100 hourly simple moving average.
- There is a major bearish trend line forming with resistance near $29,600 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could continue to move lower if it stabilizes below the $28,500 support level.
Bitcoin price faces selling pressure
Bitcoin price stays below key $30,000 resistance area. BTC started a new low and there was a sharp move below the $28,500 support area.
The bears pushed the price below the $28,000 level. The price even tested the $27,500 support and bottomed near $27505. However, there was a strong recovery and the price rose above $28,500. The bulls pushed the price above $29,000, but struggled near $29,600.
There is also a major bearish trend line forming with resistance near $29,600 on the hourly chart of the BTC/USD pair. Bitcoin traded below the 23.6% Fibonacci retracement level of the upward move from the low-swinging $27,505 to the $29,749 high.
It is now trading below $29,000 and 100-hour simple moving average. There is an immediate resistance on the upside near the $29,250 level. The next major resistance is near the $29,600 level and the 100 hourly simple moving average.
Source: BTCUSD on TradingView.com
The main resistance is near $29.750. It is close to the 50% Fib retracement level of the upward move from the swing low $27,505 to $29,749. A clear move above the $29,750 resistance might start a strong rally. In the mentioned case, the price may rise towards the $30,600 resistance area.
More losses in bitcoin?
If Bitcoin fails to clear the $29,600 resistance area, it may continue to move lower. There is immediate support on the downside near the $28,650 level.
The first major support is near the $28,500 level. A break-down below the support level at $28,500 may cause the price to drop further. In the mentioned case, the price may revisit the $27,500 support area.
Hourly MACD – The MACD is now gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Key support levels – $28,500, followed by $27,500.
The main resistance levels are $29,600, $29,750, and $30,600.