Key Takeaways:
- Bitcoin price broke a major resistance near $27,000 and the 50-day simple moving average (blue).
- BTC/USD surpassed a crucial bearish trend line with resistance near $27,050 on the daily chart.
- The price is facing rejection near a major breakout zone at $28,500.
NEW DELHI (CoinChapter.com) — Bitcoin price steadily increased above $27,000. BTC/USD must settle above $28,500 to start a real uptrend toward $30,000 or even $32,000 in October 2023.
Bitcoin Price Faces Rejection
After retesting a crucial support zone at $24,800, Bitcoin price started a recovery wave. The BTC/USD climbed above the $26,000 resistance zone to move into a short-term positive zone.
During the increase, the bulls cleared a few key hurdles near $27,000 and the 50-day simple moving average (blue). The price surpassed a crucial bearish trend line with resistance near $27,050 on the daily chart.
There was a strong upward move above the $28,000 resistance. However, the price faced rejection near the $28,500 level. It coincides with the 50% Fib retracement level of the main decline from the $31,845 swing high to the $24,713 low.
Bitcoin faced rejection near the same area a couple of weeks ago. This could be a worrying sign for the bulls. To continue higher, they need to clear the $28,500 resistance.
Immediate resistance above $28,500 could be $29,120. It is close to the 61.8% Fib retracement level of the main decline from the $31,845 swing high to the $24,713 low. A successful daily close above the $28,500 resistance and a clear move above $29,120 could spark strong bullish moves.
The price could drift toward the $30,000 level in the stated case. Any more gains might push the price toward the $32,000 resistance zone.
Just A Bulls Trap?
Conversely, Bitcoin could start another decline and trim all its recent gains. Immediate support is near the $27,200 level. The main breakdown support is now forming near the $26,200 level and the 50-day simple moving average (blue).
A close below the $26,200 support might increase selling pressure. The price may decline toward the $25,400 level in the stated case. The next key support is near the $24,800 level. A daily close below $24,800 could send BTC toward the $22,000 level in the coming days.
Overall, Bitcoin’s price shows signs of life, but it still faces strong resistance near $28,500. If BTC fails to settle above $28,500, it could trim gains and revisit the $24,800 support. Conversely, the price could start a real uptrend and revisit $32,000.
