Bitcoin Price Drops After Rejection at $28,800 Highs: Indicators Remain Bullish

Bitcoin price failed to clear the $28,800 resistance. BTC is correcting gains, but downsides might be limited below the $27,550 support zone.

• Bitcoin started a downside correction after it failed to clear the $28,800 resistance zone.
• The price is trading below $28,400 and the 100 hourly Simple moving average.
• There is a connecting bearish trend line forming with resistance near $28,250 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could start a fresh increase if it clears the $28,300 resistance level.

Bitcoin Price Corrects Gains

Bitcoin price attempted a key upside break above the $28,800 resistance zone. BTC struggled to gain strength above the $28,800 level and reacted to the downsides.

There was a drop below the $28,400 and $28,200 levels. The bears were able to push the price below the $28,000 support. It traded as low as $27,813 before the bulls appeared. Bitcoin price is now consolidating above the recent low and trading near $28,000.

It is trading below $28,400 and the 100 hourly Simple moving average. Immediate resistance is near the $28,200 level. There is also a connecting bearish trend line forming with resistance near $28,250 on the hourly chart of the BTC/USD pair.

The next major resistance is near the $28,300 zone. It is near the 50% Fib retracement level of the downward move from the $28,792 swing high to the $27,812 low.

The key hurdle is now forming near $28,400 or the 61.8% Fib retracement level of the downward move from the $28,792 swing high to the $27,812 low. A clear move above the $28,400 level might start a fresh increase toward the $28,800 resistance zone.

Source: BTCUSD on TradingView.com

The next key resistance is near the $29,200 level, above which the price could rise toward the $30,000 level. Any more gains might call for a test of the $31,200 resistance zone.

More Losses in BTC?

If Bitcoin’s price fails to clear the $28,400 resistance, it could start another decline. Immediate support on the downside is near the $27,800 zone.

The next major support is near the $27,550 zone or the recent low. A downside break below the $27,550 support might send the price toward the $26,500 support zone.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

Major Support Levels – $27,800, followed by $27,550.

Major Resistance Levels – $28,300, $28,400, and $28,800.

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