Bitcoin’s price recently surged towards the critical $28,500 resistance level, marking a significant uptrend. However, a corrective phase ensued, and BTC currently finds support at $27,350.
Steady Climb Above Key Levels
BTC displayed a steady ascent, surpassing both the $28,000 and $28,200 resistance barriers. The cryptocurrency even ventured to test the $28,500 mark, achieving a multi-week high of approximately $28,565. Subsequently, a downward correction ensued.
Despite the correction, Bitcoin continues to trade above the crucial $27,400 level and the 100-hourly Simple Moving Average (SMA). Furthermore, an important bullish trend line is forming, with support at approximately $27,400, as indicated on the BTC/USD hourly chart.
Immediate resistance is anticipated around the $27,850 level, with the next significant hurdle lying at $28,000. A successful breach of the $28,000 resistance may trigger another upward move. In such a scenario, Bitcoin’s price could set its sights on the $28,500 resistance, with the possibility of an ascent toward the $29,200 level.
Source: BTCUSD on TradingView.com
Potential Downside Scenarios
In the event that Bitcoin struggles to overcome the $28,000 resistance, it may experience further declines. Initial support is situated at approximately $27,400, closely aligned with the aforementioned bullish trend line. Subsequently, the $27,250 level and the 100-hourly SMA represent pivotal support zones. A sustained breach and closure below $27,250 could lead to a descent toward $26,800, with the next support resting at $26,650. Further losses may result in a test of the $26,000 level.
While Bitcoin recently underwent a technical correction, it remains above key support levels and maintains bullish momentum. Traders and investors are closely monitoring the $28,000 resistance level, as a successful breach could usher in a new uptrend. Conversely, the cryptocurrency has crucial support zones to cushion potential downward movements.