Bitcoin registered huge gains following an increase from $19.6k to $28.8k in two weeks. The moment looks exhausting with a double-top formation. It currently takes a downturn with a big potential sell-off.
The critical $26.6k level, which marked the May 2022 low appeared to have provided support for Bitcoin in the mid-week. It quickly bounced off it but later saw rejection around the $28.8k area for the second time.
This rejection led to about a 5% decline over the past 24 hours, bringing the price to $27.1k at the time of writing.
Exhaustion in bullish momentum has turned the price weak again. The bears are slowly stepping back as btcusd fails to advance higher and suspends a bullish rally for another day. As shown on the 4-hour chart, volatility is increasing due to heavy selling pressure.
As the price nears the weekly support level, a breakdown will likely activate a big sell-off if supply becomes heavier. Such a scenario will confirm the bearish double-top pattern, formed yesterday.
If the breakdown fails and Bitcoin continues to find support above this critical support level, the price may bounce and maintains a sideways trend for some days before deciding to break or make.
Gauging the price from a technical standpoint, Bitcoin has reached an overbought zone and is likely to enter a consolidation or correction phase – it’s due for a drop.
Bitcoin’s Key Levels To Watch
The price range to watch for a breakdown is $26k, followed by the $25.6k and majorly $25,255 support levels. Other support levels to consider are $24,700 and $24,277.
Should BTC starts to increase above this support, the first level of resistance would be $27.3k and perhaps $28k. Reclaiming these levels will trigger more push to $28,867 before soaring to a new high.
Key Resistance Levels: $27,300, $28,000, $28,867
Key Support Levels: $26,600, $25,255, $24,277
- Spot Price: $27,100
- Trend: Neutral – Bullish
- Volatility: Low
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.