The price of Bitcoin is reversing gains from $28,000. Before the bulls regain control, BTC may drop even further below $26,800.

The $28,150 barrier area marked the beginning of the downward correction for bitcoin.

The price is currently trading over $26,600, as is the 100-hour simple moving average.

On the hourly chart of the BTC/USD pair (data feed from Kraken), a descending channel is formed with resistance around $27,250.

Before attempting a new rise, the pair may continue to drop toward $26,800.

Bitcoin Price Starts Downside Correction

The price of bitcoin began a steady rise above the $27,000 resistance level. Before the bears materialized, BTC even surged up toward the $28,000 barrier level.

When a high was reached around $28,150, the price began to decline. The $28,000 and $27,500 limits were moved lower. Even below the $27,400 mark, the price skyrocketed. The crucial climb from the $25,928 swing low to the $28,150 high was retraced by 50% of the Fibonacci retracement, and this is where the price found support.

Currently, the price of bitcoin is trading above both $26,600 and the 100-hour simple moving average. On the hourly chart of the BTC/USD pair, there is also a descending channel emerging with resistance near $27,250.

Near the $27,200 mark and the channel trend line, there is immediate resistance on the upside. The $27,400 level is the first significant obstacle. The price could reach $28,000 if there is a clear upward movement from the $27,400 mark. Near $28,150 is the next significant barrier, and if this barrier is crossed, a steady gain may follow.

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What’s Key Support In BTC?

Bitcoin may continue to decline if the $27,400 resistance is not overcome. On the downside, there is immediate support close to the $27,000 mark.

The 61.8% Fib retracement level of the significant climb from the $25,928 swing low to the $28,150 high is close to the $26,800 level, which is the next significant support. The bulls may come under a lot of pressure if the downside breaks below the $26,700 barrier. The cost might decrease to around $26,000 in the scenario mentioned.


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