Bitcoin price experienced a downside correction after failing to surpass the crucial $28,500 resistance zone. The digital asset dropped below key levels at $28,200 and $28,000, signaling a temporary setback for the bulls.
However, the decline found support near $27,500, where bullish activity emerged. A low was formed around $27,559, and the price is currently consolidating. Notably, there was a recent test of the 50% Fibonacci retracement level, calculated from the swing high at $28,045 to the low at $27,559.
Currently, Bitcoin is trading above $27,550, maintaining its position above the 100 hourly Simple Moving Average. On the hourly chart of the BTC/USD pair, a significant bearish trend line is forming with resistance near $27,850.
In terms of resistance, the immediate hurdle is at the $27,850 level and the aforementioned trend line. If successfully overcome, the next substantial resistance awaits at $28,000, which also coincides with the 76.4% Fibonacci retracement level from the recent decline.
A breakout above $28,000 may trigger a steady increase toward the critical $28,500 resistance zone. If the bulls manage to clear this hurdle, the price might surge toward the $29,200 resistance zone. Beyond that, the next significant obstacle lies at $29,500, potentially leading to a rise toward the psychological $30,000 resistance level.
Conversely, failure to breach the $28,000 resistance could result in further downward movement. Immediate support can be found near the $27,550 level. In case of a breakdown below this level, the next major support zone resides around $27,500, along with the 100 hourly SMA. A sustained decline may push the price toward the crucial $27,000 support level.
In conclusion, while the Bitcoin price experienced a downside correction, the bulls have remained active, attempting to maintain a favorable position. Traders should monitor the resistance levels closely, as a breakout above $28,000 could pave the way for a significant upward move, while failure to overcome resistance may result in further downward pressure.
