Bitcoin broke the key $28,500 support zone against the US Dollar. BTC is down 10% and could even drop below the $25,000 support zone.
- Bitcoin extended its decline below the $28,500 and $26,500 support levels.
- The price is now trading below the $28,500 level and the 100 hourly simple moving average.
- There is a key bearish trend line forming with resistance near $27,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could continue to move below the $25,000 support zone in the near term.
Bitcoin price gains bearish momentum
Bitcoin price failed to clear the $30,000 resistance zone. As a result, the bears took control and pushed the price below the key support levels of $29,500 and $28,500.
It caused a major drop below the $28,000 level. The price decreased by almost 10% and even broke the support level of $26,500. A new multi-week low is formed near $25,571 and the price is still showing many bearish signs.
Bitcoin is now trading well below the $28,500 level and the 100 hourly simple moving average. There is also a key bearish trend line forming with resistance near $27,200 on the hourly chart of the BTC/USD pair. An immediate resistance on the upside is near the $26,200 level.
It is near the 23.6% Fibonacci retracement level of the recent drop from the $28,307 high to $25,571 low. The first major resistance is near the $27,200 level and the downtrend line.
Source: BTCUSD on TradingView.com
The 50% Fibonacci retracement level of the recent drop from the $28,307 high to $25,571 low is also close to the trend line resistance. The main resistance is near the $28,500 level. A clear move above the $28,500 resistance level could push the price further higher.
More losses in BTC?
If bitcoin fails to clear the $27,200 resistance zone, it could continue moving lower. An immediate support on the downside is near the $25,500 level.
The next big support is near the $25,000 level. A downside break below the $25,000 support could send the price further lower. In the indicated case, the price could drop towards the $23,500 support zone in the near term.
Hourly MACD – The MACD is now gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now in the oversold area.
Major support levels: $25,500, followed by $25,000.
Major resistance levels: $26,200, $27,200 and $28,500.