July 24, 2024
Bitcoin News

Bitcoin Price Just Saw Technical Correction, Can Bulls Save The Day?

Bitcoin’s price has shown signs of a decent increase as it broke above the key resistance zone at $28,000. However, the leading cryptocurrency faced hurdles in clearing the $28,400 and $28,500 resistance levels, hindering its upward momentum.

After reaching a high of around $28,450, Bitcoin experienced a downside correction. The price dipped below the crucial $28,000 support zone and even fell beneath the 50% Fibonacci retracement level of the upward movement from the swing low of $27,142 to the high of $28,450.

Adding to the bearish sentiment, a significant bullish trend line with support near $27,720 was broken on the BTC/USD hourly chart. Nonetheless, Bitcoin is still trading above the $27,500 mark and the 100 hourly Simple Moving Average, indicating some resilience in the market.

Currently, the cryptocurrency is finding support near the 61.8% Fibonacci retracement level of the aforementioned upward move, which extends from the swing low of $27,142 to the high of $28,450. On the upside, immediate resistance can be found near the $27,800 level, followed by the crucial barrier at $28,000.

If Bitcoin breaks above $28,000, it could pave the way for a potential surge toward the main resistance at $28,500. A successful close above this resistance zone might ignite a strong rally toward the next hurdle at $29,200. Further up, the key resistance lies near $29,400, which, if surpassed, could lead to a rise toward the significant $30,000 level.

However, if Bitcoin fails to overcome the $28,000 resistance, the price could face continued downside pressure. Immediate support awaits near the $27,580 level, and a breach below this level might expose the cryptocurrency to further bearish momentum.

The next major support sits at the $27,500 zone, and if breached, it could intensify selling pressure. In such a scenario, the price could decline toward the $27,150 support area, where the 100-hourly Simple Moving Average is also positioned.

As the Bitcoin price undergoes these critical price movements, market participants closely monitor key levels to gauge the cryptocurrency’s future trajectory. An upside break above the $28,000 resistance could signal a bullish trend while failing to surpass it might result in further downside potential.