Bitcoin Price Extends Consolidation, Why Upsides Could be Contained

Aayush Jindal

1 year ago

2 mins read

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Bitcoin price started a consolidation phase below the $28,800 resistance. BTC is struggling and might face heavy selling interest above $28,500 and $28,800.

Bitcoin is slowly moving lower and trading well below the $28,800 resistance zone.
The price is trading below $28,200 and the 100 hourly Simple moving average.
There is a key bearish trend line forming with resistance near $28,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could start a fresh increase if it clears the $28,250 resistance level.

Bitcoin Price Faces Resistance

Bitcoin price remained in a small range below the $28,800 resistance zone. BTC struggled to recover above the $28,400 resistance and extended its decline.

There was a downside extension below the $27,800 level. The price traded as low as $27,700 before it started a consolidation phase. There was a minor increase above the 23.6% Fib retracement level of the downward move from the $28,792 swing high to the $27,700 low.

Bitcoin price is now trading below $28,200 and the 100 hourly Simple moving average. There is also a key bearish trend line forming with resistance near $28,000 on the hourly chart of the BTC/USD pair.

Immediate resistance is near the trend line and $28,050. The next major resistance is near the $28,250 zone. It is near the 50% Fib retracement level of the downward move from the $28,792 swing high to the $27,700 low.

Source: BTCUSD on TradingView.com

A close above the $28,250 resistance might push the price higher toward the range resistance. The next key resistance is near the $28,500 level, above which the price could rise toward the $28,800 level. Any more gains might call for a test of the $30,000 resistance zone.

More Losses in BTC?

If Bitcoin’s price fails to clear the $28,250 resistance, it could start another decline. Immediate support on the downside is near the $27,700 zone.

The next major support is near the $27,550 zone. A downside break and close below the $27,550 support might start a sharp decline. In the stated case, the price may perhaps decline toward the $26,500 support zone.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

Major Support Levels – $27,700, followed by $27,550.

Major Resistance Levels – $28,250, $28,500, and $28,800.

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

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