Bitcoin Price Shows Signs of Exhaustion, Why BTC Could Take A Hit

Key Takeaways:

  • Bitcoin price is struggling to remain in a positive zone above $28,000.
  • BTC/USD follows a rising channel with support at $27,650 on the daily chart.
  • The price could correct lower if it continues to face resistance near $28,800.
Broken bitcoin lies in the background of the falling chart of the cryptocurrency rate. Pastel pink background. Flat lay top view. The fall and collapse of the course of crypto currency
Bitcoin Price Shows Signs of Exhaustion, Why BTC Could Take A Hit

Bitcoin price is struggling to rise further above $28,800. BTC/USD might correct sharply lower if a downside break below $27,700.

Bitcoin Price Faces Resistance

In the past few days, Bitcoin’s price increased significantly above the $27,000 resistance zone. The BTC/USD pair climbed above the $27,500 level to move into a positive zone.

The pair settled above the $28,000 resistance zone and the 50-day simple moving average (blue). However, the bulls seem to be facing strong resistance near the $28,800 level. Conversely, Ethereum saw a bullish break above the $1,850 and $1,880 resistance levels, suggesting weakness in Bitcoin dominance.

Bitcoin price daily chart
Bitcoin price daily chart | Source: BTCUSD on TradingView.com

The recent high was around $29,171, and the price is now consolidating gains. The price seems to follow a rising channel with support at $27,650 on the daily chart.

Similar patterns are visible on the daily chart, followed by a short-term decline. If the bulls continue to struggle near the $28,800 resistance, there is a risk of a downside break below the channel trend line at $27,700.

The next major support is near the $27,000 level or the 23.6% Fib retracement level of the upward move from the $19,592 swing low to the $29,171 high.

The main support is now forming near the $25,000 level or the 50-day simple moving average (blue). It is close to the 50% Fib retracement level of the upward move from the $19,592 swing low to the $29,171 high. Any more losses could trigger a sustained decline.

The price may test the $21,800 support in the stated case.

More Gains?

Conversely, the Bitcoin price could clear the $28,800 resistance and climb further. Immediate resistance is near the $29,200 level. The next key resistance is near the $30,000 level.

If a clear move is above the $30,000 level, the price could rise toward the $31,500 resistance soon. Any more gains might push the price toward the $32,000 resistance zone. In the stated case, a run toward the $32,650 level is possible.

Overall, Bitcoin price is showing signs of exhaustion above the $28,000 level. If BTC continues to struggle near $28,800, there could be a bearish reaction. Conversely, the price may rise steadily and might soon test $30,000.

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