Bitcoin Price Extends Consolidation, Why Upsides Could be Contained

Bitcoin price started a consolidation phase below the $28,800 resistance. BTC is struggling and might face heavy selling interest above $28,500 and $28,800.

• Bitcoin is slowly moving lower and trading well below the $28,800 resistance zone.
• The price is trading below $28,200 and the 100 hourly Simple moving average.
• There is a key bearish trend line forming with resistance near $28,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could start a fresh increase if it clears the $28,250 resistance level.

Bitcoin Price Faces Resistance

Bitcoin price remained in a small range below the $28,800 resistance zone. BTC struggled to recover above the $28,400 resistance and extended its decline.

There was a downside extension below the $27,800 level. The price traded as low as $27,700 before it started a consolidation phase. There was a minor increase above the 23.6% Fib retracement level of the downward move from the $28,792 swing high to the $27,700 low.

Bitcoin price is now trading below $28,200 and the 100 hourly Simple moving average. There is also a key bearish trend line forming with resistance near $28,000 on the hourly chart of the BTC/USD pair.

Immediate resistance is near the trend line and $28,050. The next major resistance is near the $28,250 zone. It is near the 50% Fib retracement level of the downward move from the $28,792 swing high to the $27,700 low.

Source: BTCUSD on TradingView.com

A close above the $28,250 resistance might push the price higher toward the range resistance. The next key resistance is near the $28,500 level, above which the price could rise toward the $28,800 level. Any more gains might call for a test of the $30,000 resistance zone.

More Losses in BTC?

If Bitcoin’s price fails to clear the $28,250 resistance, it could start another decline. Immediate support on the downside is near the $27,700 zone.

The next major support is near the $27,550 zone. A downside break and close below the $27,550 support might start a sharp decline. In the stated case, the price may perhaps decline toward the $26,500 support zone.

Technical indicators:

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.

Major Support Levels – $27,700, followed by $27,550.

Major Resistance Levels – $28,250, $28,500, and $28,800.

Source