Bitcoin surged below the key $28,500 support area against the US Dollar. BTC is falling and may continue to drop towards the $27,500 support.
- Bitcoin is heading lower and facing major resistance near the $29,600 area.
- The price is now trading below $29,000 and the 100 hourly simple moving average.
- A major bearish trend line has formed with resistance near $29,600 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is likely to continue its decline if it breaks below the $28,500 support.
Bitcoin price faces selling pressure
Bitcoin price remains below key $30,000 resistance zone. BTC started a fresh decline and fell sharply below the $28,500 support area.
The bears pushed the price below $28,000. The price even tested the $27,500 support and formed a low near $27,505. However, there was a strong recovery and the price climbed 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 is trading below the 23.6% Fib retracement level from the $27,505 swing low to $29,749 high.
It is now trading below $29,000, while 100 hourly simple moving average. Immediate resistance on the upside is near $29,250. The next major resistance is near $29,600 and the 100 hourly simple moving average.
Source: BTCUSD on TradingView.com
The main resistance is near $29,750. It is near the 50% Fib retracement level of the upward move from the $27,505 swing low to $29,749 high. A clear break above the $29,750 resistance could start a strong move higher. In the aforementioned case, the price could rise towards the $30,600 resistance.
BTC to lose more?
If Bitcoin fails to break the $29,600 resistance zone, it could continue to decline. Immediate support on the downside is near $28,650.
The first major support is near $28,500. A break below the $28,500 support could send the price lower. In the aforementioned case, the price is likely to revisit the $27,500 support area.
Hourly MACD – The MACD is now picking up pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major support levels – $28,500, followed by $27,500.
Major resistance levels – $29,600, $29,750 and $30,600.