Bitcoin’s attempt to surpass the resistance at $30,000 has fallen short, resulting in a decline in its price. As it stands, there is a looming risk of a further slide towards the support zone at $27,200.
At the moment, BTC is experiencing a dip from the $29,750 resistance region, with its price currently trading below both the 100 hourly Simple moving average and $28,800.
Bitcoin Price Extends Losses
Bitcoin’s price has continued to decline after encountering difficulty in surpassing the $30,000 resistance zone. The cryptocurrency was met with strong rejection around the $29,750 mark, prompting a fresh downturn. This resulted in a clear drop below the $29,200 and $29,000 levels, and the price has now consolidated its losses near the $28,000 support level.
At present, Bitcoin’s price is trading below both the 100 hourly Simple moving average and $28,800, with a bearish trend line taking shape on the hourly chart of the BTC/USD pair. The cryptocurrency is currently facing resistance near the $28,600 level, which is close to the 50% Fib retracement level of its recent decline from the $29,128 swing high to the $28,100 low. On the hourly chart, a bearish trend line is taking shape, indicating a resistance area at around $28,650. The pair could experience a further downturn if there is a break below the $28,000 support level.
The next significant resistance for Bitcoin is near the trend line zone or the 61.8% Fib retracement level of the recent decline from the $29,128 swing high to the $28,100 low. If the cryptocurrency manages to break past this resistance, it may rise towards the $29,000 resistance zone or the 100 hourly Simple moving average.
Bitcoin’s Climb Towards the Coveted $30K Mark
Bitcoin has been steadily climbing towards the highly coveted $30K mark, with recent gains attributed to the second major bank failure in the US. This has caused unease within the entire banking sector and led to a shift in market sentiment towards alternative safe-havens like gold and bitcoin.
The default of First Republic Bank and a disappointing Q1 earnings report from PacWest Bancorp have resulted in a substantial drop in the latter’s stocks. Additionally, a Gallup Survey has revealed that almost 50% of Americans are concerned about the security of their funds in banks.
These factors have contributed to the current BTC/USD uptrend, with the cryptocurrency gaining momentum and approaching the crucial $30K mark. Bitcoin’s market share has also experienced a significant surge during this time, with its dominance rate rising from 42% to 49% since March, according to TradingView. This marks its highest level in 22 months. The ongoing turbulence in the US banking sector has been quite advantageous for Bitcoin during this period.
More Losses in BTC?
Bitcoin’s price may experience further decline if it fails to surpass the resistance level at $28,650. The cryptocurrency’s immediate support level on the downside is at around $28,000 and its recent low.
In the event that the support level at $28,000 is breached, the next significant support zone is at around $27,650. A drop below this level could cause Bitcoin’s price to fall towards the support zone at $27,200. If the cryptocurrency experiences more losses, it could drop further towards the $26,500 level in the near future.
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