Bitcoin dropped consistently for the past few days and pinned support above $26k yesterday. It bounced off that price level and posted a small gain over the past hours.
Last week, BTC traded moderately above the important $28k support level with a nice bounce at the $30k resistance level. It attempted to flip the resistance but kept rejecting that level.
Due to this rejection, it initiated a short and fell consistently for 7 days. During this period, it passed through the mentioned important support level, that suppressed bearish action in the past week. That support now serves as resistance.
But fortunately for the bulls, selling exhaustion set in. The bleeding stopped temporarily at around $25.8k (weekly low) and they took advantage of it – pushing the price to the high of $27k today. However, how far they can go will determine if BTC can reverse well above the weekly low.
Adding to the latest price recovery, yesterday’s candle close came with a pin bar, indicating a solid buying reaction. That reaction technically brought a small rally over the past 24 hours.
Even though BTC price increases further in the coming days, it must break through the solid resistance line forming since the price fell from $31k in April.
If the price continues to trade under this resistance line for the rest of this month, the price could navigate the broadening wedge’s lower boundary for support.
Bitcoin’s Key Levels To Watch
In the next leg down, the vital support levels to pay attention to are $26,600 and the February high of $25,255. If the price passes through those levels, the next selling target would be $24,033
For now, the bulls are showing interest. If they push above the current daily low, the next resistance level to keep in mind is $28,035, followed by $28,867, $29,000, and $30,000.
Key Resistance Levels: $28,035, $28,867, $30,000
Key Support Levels: $26,600, $25,255, $24,033
- Spot Price: $26870
- Trend: Bearish
- Volatility: Moderate
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any projects.
