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Bitcoin price topside bias is vulnerable if it continues to break below $28,000

Bitcoin price is struggling to clear the $27,500 resistance zone. BTC is slipping and it could see a sharp drop towards $25,550 in the coming sessions.

  • Bitcoin is still struggling to stay above the $27,000 support zone.
  • The price is below $27,200 and the 100 hourly simple moving average.
  • There was a break below a key bullish trend line with support near $27,100 on the hourly chart of the BTC/USD pair (data feed by Kraken).
  • The pair might revisit the $26,550 support and continue down.

Bitcoin price is facing resistance

Bitcoin price started a slight upward correction from the $26,550 support zone. BTC scaled above the $27,000 resistance zone and the 100 hourly simple moving average.

There was a move above the 23.6% Fib retracement level of the key pullback from the $28,450 swing high to the $26,571 low. However, the bears have been active near the $27,500 resistance zone. There was no convincing move above the $27,350 resistance zone.

Bitcoin price stayed below the 50% Fib retracement level of the main drop from the swing high at $28,450 to the low at $26,571. The trading price is currently below $27,200 and the 100 hourly simple moving average.

Immediate resistance on the upside is near $27,200 and the 100 hourly simple moving average. The next major resistance is near the $27,350 level. The main resistance is near the $27,500 level.

Source: BTCUSD on TradingView.com

A break to the upside and a close above $27,500 could trigger a decent rally towards $28,000. Any further rise above the $28,000 resistance zone could propel the price towards the $28,500 resistance zone. If the close is above the $28,500 resistance level, there might be a move towards the $30,000 resistance area in the short term.

More BTC losses?

If bitcoin price fails to clear the $27,350 resistance, it might fall further. Immediate support on the downside is near $26,800.

The next major support is near the $26,550 zone, below which the price might start a sharp decline. In the mentioned case, the price could drop towards the $25,500 support in the coming sessions.

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 below the 50 level.

Major support levels – $26,800 followed by $26,550.

Major resistance levels – $27,200, $27,350 and $27,500.

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