Bitcoin price experienced a sudden surge, crossing the $30,000 mark briefly, following the circulation of fake news regarding the approval of a spot ETF. The price has since retreated but is consolidating above the $28,200 level. This article analyzes the current state of Bitcoin and its potential for further growth.
Bitcoin has managed to hold onto its gains above the $28,000 and $28,200 levels. The current price is also trading above the 100 hourly Simple Moving Average (SMA). A key bullish trend line is forming with support near $28,000 on the hourly chart of the BTC/USD pair, as indicated by data feed from Kraken. The pair could potentially initiate a fresh increase if it surpasses the $28,800 resistance level.
After the initial surge, Bitcoin encountered a drop below the $29,200 and $28,800 support levels. Its price even declined below the 50% Fibonacci retracement level from the swing low of $26,820 to the high of $30,000. Nonetheless, Bitcoin is currently trading above $28,200 and the 100 hourly SMA, with the key bullish trend line near the 61.8% Fibonacci retracement level of the upward move. These factors indicate a potential for further growth.
Bitcoin faces immediate resistance near the $28,600 level, with the next key barrier situated around $28,800. A clear breakthrough beyond these levels may set the stage for a larger increase, with the next significant resistance around $29,200. If Bitcoin manages to close above the $29,200 resistance, a steady rise towards the $29,500 level is plausible, and further gains could push BTC towards the $30,000 mark.
Failure to overcome the $28,800 resistance zone poses a potential slide for Bitcoin. Immediate support on the downside is observed near the $28,000 level and the zone associated with the trend line. The subsequent major support lies around $27,800. A break below and close below the $27,800 support could lead to further price depreciation, with the next support level at $27,200 and the 100 hourly SMA.
The hourly Moving Average Convergence Divergence (MACD) for Bitcoin indicates an increasing pace in the bullish zone, suggesting a positive outlook. Additionally, the Relative Strength Index (RSI) for BTC/USD is currently above the 50 level, further supporting the potential for upward movement.
While Bitcoin experienced a temporary surge due to fake news, the cryptocurrency is now consolidating above the $28,200 level. The formation of a key bullish trend line and the presence of crucial support and resistance levels suggest a possibility of further growth. However, failure to overcome the resistance levels could result in a downside movement. Technical indicators portray a positive sentiment for Bitcoin, but caution should be exercised as market conditions continuously evolve.