Key Takeaways:
- Bitcoin price is still trading above the 50-week simple moving average (blue).
- BTC/USD is struggling to clear a bearish trend line with resistance at $28,200 on the weekly chart.
- The price could start another increase unless it breaks the $23,800 support zone.
NEW DELHI (CoinChapter.com) — Bitcoin price is correcting gains from $31,800. BTC/USD must stay above the $23,800 support to remain in a bullish zone.
Bitcoin Price Holds Crucial Support
This year, Bitcoin’s price increased significantly above the $20,000 resistance zone. The BTC/USD pair climbed above the $22,000 and $23,800 resistance levels.
During the increase, the price cleared the 23.6% Fib retracement level of the upward move from the $48,192 swing high to the $15,487 low. The price also settled above the $24,000 level and the 50-week simple moving average (blue).
There was a move above $30,000 in April and June 2023, but the bears were active near the $31,800 resistance zone. The 50%, the 23.6% Fib retracement level of the upward move from the $48,192 swing high to the $15,487 low is a major hurdle.
Besides, Bitcoin struggles to clear a bearish trend line with resistance at $28,200 on the weekly chart. It is now correcting gains and trading below $28,000.
Immediate support is near the $25,150 level. The main breakdown support is now forming near the $23,800 level and the 50-week simple moving average (blue). A close below the $23,800 support might spark another nasty decline.
The price may decline toward the $22,000 level in the stated case. The next key support is near the $20,000 level. Any more losses could open the doors for a move toward the $18,000 pivot level in the coming weeks.
Another Increase?
Conversely, Bitcoin could consolidate above the 50-week simple moving average (blue) and start another increase. Immediate resistance is near $27,000.
The first major resistance is near the trend line and $28,500. A successful daily close above the $28,500 resistance could initiate a steady increase. The price could drift toward the $30,000 level in the stated case.
Any more gains might push the price toward the $31,800 resistance zone, above which the price could start a steady uptrend in the coming months.
Overall, Bitcoin price is correcting gains and still trading in a bullish zone above $23,800. It must clear $27,000 and $28,500 to start a fresh increase. Conversely, the price might take a major hit and slide below the key $23,800 support in the coming weeks.
