After slipping to a three-month low in the past week, Bitcoin recovered quickly above a crucial resistance and stayed quiet throughout the week. This week appears slightly volatile as it slowly climbs toward the recent breakdown level.
Bitcoin has made a small upward shift since the price quickly recovered from $25,811 to $26,800 last week. The price was stuck around $27,000 for some days before it added a few dollars to its price to tap $27,663 on Monday.
It fell briefly from that level and pushed back yesterday after a five-day low of $26,544. The price is slowly climbing toward the vital $28,000 resistance level, which flips during last week’s dip. Though the set-up is not volatile as expected due to weakness in buying over the past few days.
However, the lower low and lower high patterns have not been finished yet. The bears are taking enough breath to release more pressure in the market. When they will do that remains unknown – possibly after testing the resistance line that Bitcoin has been facing since it started to correct lower in April.
A surge through the resistance line should bring the bulls back into the market. In case the asset resumes selling below the mentioned vital resistance level, the price may navigate February’s high for a stopover.
To sum it up, the leading coin still targets the lower boundary of the broadening wedge for a solid correctional area for a rebound. That suggests a reason for the choppy retracement move of the existing bearish impulsive as shown on the daily chart.
Bitcoin’s Key Levels To Watch
The resistance to watch above the $28,035 level is $28,867, which lies at the tip of the resistance line. The levels above it are $29,000, $30,000, and $30,716.
For bearish continuation, Bitcoin must retake $26,600 down to last week’s low before slipping to February’s high of $25,255 and $24,030 around the wedge’s lower boundary for a fresh increase.
Key Resistance Levels: $28,035, $28,867, $30,000
Key Support Levels: $26,600, $25,255, $24,033
- Spot Price: $27,360
- 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.
Photo by Kanchanara on Unsplash
