Bitcoin Price Shows Weak Correction, But Bulls Remain Active
Bitcoin price underwent a downward correction after failing to surpass the crucial $28,500 resistance zone. The digital asset dipped below key levels of $28,200 and $28,000, signaling a temporary pullback for gains.
However, the dips found support near $27,500, where bullish activity is emerging. A low formed around $27,559, and the price is currently consolidating. Notably, there was the recent test of the 50% Fibonacci retracement level, which counted from a swing high of $28,045 to a low of $27,559.
Currently, Bitcoin is trading above $27,550, holding its ground above the 100-hour 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 hurdles are at the $27,850 level and the trend line mentioned above. If overcome, further substantial resistance awaits at $28,000, which also coincides with the 76.4% Fibonacci retracement level of the recent slide.
A break above $28,000 could trigger a steady advance towards the critical $28,500 resistance zone. If the bulls manage to overcome this hurdle, the price may surge towards the $29,200 resistance zone. Beyond that, the next significant obstacle lies at $29,500, potentially leading to an advance towards the $30,000 psychological resistance level.
Conversely, failure to break the $28,000 resistance could result in a further downside move. Immediate support can be found near the $27,550 level. In case of a break below this level, the next key support zone is around $27,500, along with the 100 hourly SMA. Sustained declines could push the price towards the important $27,000 support level.
In conclusion, while the Bitcoin price is undergoing a downside correction, the bulls remain active, trying to maintain profitable positions. Traders should monitor the resistance level closely, as a break above $28,000 could pave the way for a significant upward move, while failure to overcome resistance could result in further downside pressure.
