Bitcoin has been on a downtrend recently and technical analysis suggests that it could move lower towards the $27,200 support zone. The bulls failed to gain strength above $29,500 and the price started a fresh decline recently. Bitcoin bears were able to push the price below the $29,000 and $28,000 support levels. A low was formed near the $28,009 zone and the price is now consolidating losses since.

Immediate resistance is near the $28,500 level as there is a major bearish trend line forming with resistance near it on the hourly chart of the BTC/USD pair. It is also close to the 50% Fibonacci retracement level of the downward move from the $30,461 high to the $28,009 low. Breaking the $28,500 resistance could call for a decent increase towards the $30,000 mark.

If Bitcoin’s price fails to break the noted resistance, it could continue to move down. Immediate support is near the $28,100 level followed by the $28,000 zone. A downside break and close below the $28,000 support could extend losses towards the $27,400 support. Any more losses might bring the price towards the $27,200 mark.

On the other hand, hourly MACD is gaining pace in the bearish zone and hourly RSI is also well below the 50 level. These technical indicators suggest Bitcoin’s price could extend its downtrend towards the said support.



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