Bitcoin Price Prolongs Consolidation, Why Rises Might Be Contained

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Bitcoin price started a consolidation phase below the resistance at $28,800. BTC is in trouble and could face strong selling interest above $28,500 and $28,800.

Bitcoin is slowly declining and trading well below the $28,800 resistance zone. The price is trading below $28,200 and the 100 hourly simple moving average. A key bearish trend line is forming with resistance near $28,000 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair might start a fresh rise if it breaks above the resistance level of $28,250. Bitcoin price faces resistance

Bitcoin price remained in a small range below the $28,800 resistance zone. BTC struggled to recover above the $28,400 resistance and extended its decline.

There was a downward extension below the $27,800 level. The price traded as low as $27,700 before starting a consolidation phase. There was a slight increase above the 23.6% Fib retracement level of the downward move from the $28,792 high to $27,700 low.

Bitcoin price is now trading below $28,200 and the 100 hourly simple moving average. There is also a key bearish trend line forming with resistance near $28,000 on the hourly chart of the BTC/USD pair.

Immediate resistance is near the trendline and $28,050. The next major resistance is near the $28,250 area. It is near the 50% Fib retracement level of the downward move from the $28,792 high to $27,700 low.

Source: BTCUSD on TradingView.com

A close above the $28,250 resistance could push the price higher towards the range resistance. The next key resistance is near the $28,500 level, above which the price may rise towards the $28,800 level. Any further gains may require a test of the $30,000 resistance zone.

More losses in BTC?

If Bitcoin price fails to clear the resistance at $28,250, it could start a fresh decline. Immediate support on the downside is near the $27,700 area.

The next major support is near the $27,550 area. A break to the downside and a close below the $27,550 support could initiate a sharp decline. If indicated, the price might decline towards the $26,500 support area.

Technical indicators:

Hourly MACD The MACD is now accelerating in the bearish zone.

Hourly RSI (Relative Strength Index) The RSI for BTC/USD is now below the 50 level.

Main support levels $27,700, followed by $27,550.

Major resistance levels $28,250, $28,500 and $28,800.

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