BTC Price Prediction: Increased Supply at $28000 Threatens 10% Correction in Bitcoin
BTC Price Prediction: The ongoing recovery rally in Bitcoin price has taken a halt at $28000 psychological resistance. Moreover, the daily chart showcasing rejection candles at the aforementioned resistance suggests the bullish momentum is getting exhausted. Thus, the coin holders can witness a minor retracement to recuperate buying pressure and check suitability at higher levels.
Key Points
- Higher price rejection candles at $28000 indicate the sellers are actively defending this resistance level
- A potential bearish reversal could plunge the Bitcoin price 10% down to hit the $25000 mark.
- The intraday trading volume in Bitcoin is $36.2 Billion, indicating a 26.2% loss
Source-Tradingview
Within a fortnight, the Bitcoin price witnessed an upright rally from the $20000 to the $28000 mark, registering a 40% gain. As of now, the BTC price trades at $27970 and shows a breakout attempt from the $28000-$28300 resistance zone.
However, in the last two days, the daily chart shows higher price rejection at $28000, indicating the short-term trades must be booking their profit, which increases the possibility of a bearish reversal. If the coin price shows sustainability below the $28000 mark in the few coming days, the sellers may trigger a minor correction phase.
Anyhow, after a massive directional bull run, a temporary correction could check stability at higher prices and replenish the bullish momentum. A potential downtrend may revisit $25200-$25000, which coincides with the 0.236 Fibonacci retracement level.
On a contrary note, a breakout above $28000 will undermine the bearish thesis and encourage buyers to prolong a bullish rally to $32000.
Technical Indicator
RSI: The daily RSI slope moving high in bullish territory indicates the market sentiment favors a recovery sentiment.
Bollinger Band: the BTC price wavering near the upper band of the Bollinger band indicator suggests the bullish rally was aggressive for the given, and therefore a minor retracement phase is needed to stabilize the price trend.
Bitcoin Price Intraday Levels
- Spot rate: $27935
- Trend: Bullish
- Volatility: Medium
- Resistance levels- $28000 and $32000
- Support levels- $25000 and $23870
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