Bitcoin price extends consolidation, why benefits may be contained

by James · April 6, 2023

Bitcoin price started a consolidation phase below the $28,800 resistance. BTC is struggling and may face heavy selling interest above $28,500 and $28,800.

Bitcoin is slowly moving lower and is trading well below the $28,800 resistance zone.
The price is trading below $28,200 and the 100-hour Simple Moving Average.
An important 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 could start another rally if it clears the $28,250 resistance level.

Bitcoin price faces resistance

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

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

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

Immediate resistance is near the trend line and $28,050. The next major resistance is near the $28,250 zone. It is near the 50% Fib retracement level for the downward move from the $28,792 swing high to the $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 could 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’s price fails to clear the $28,250 resistance, it could start another decline. Immediate support on the downside is near the $27,700 zone.

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

Technical indicators:

Hourly MACD – MACD is now picking up speed in the bearish zone.

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

Major support levels – $27,700, followed by $27,550.

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