Bitcoin, the largest cryptocurrency, is stuck below the $28,600 resistance zone. So far we have not been able to break this level and every attempt we see a hard rejection. In fact, yesterday it seemed that the price started a downtrend by dropping below USD 27,500. However, this was short-lived. At the time of writing, the price is back well above $28,000.
In this analysis we discuss two important issues. First, we discuss the main resistance of the $28,600 price level. Next, let’s take a look at the 200-week SMA indicator. A well-known and important indicator for analysts.
If Bitcoin fails to break the USD 28,600 resistance in a short time, it is very possible that the cryptocurrency will test the indicator as support. This indicator is about $25,000.
Bitcoin is still below $28,600
The chart below clearly shows that there is no resistance as significant as $28,600 right now. In the bull market era, this level has long been a foothold for Bitcoin. Unfortunately, the price crashed a few months ago due to this support and has not recovered until now.
Bitcoin’s price is currently at a pivotal point. If the price manages to close several daily candles above this level, it could mark a turning point for the price. Breaking this level can result in a significant price increase.
However, it is important to remember that the resistance is so great that a breakout will not succeed for two weeks. So there is a good chance that the price will not break through the resistance in the coming days and will correct the price. In this case, it is possible that support levels, say $25,000, will be tested.
The significance of the $25,000 price level
At the $25,000 price level, there is not only horizontal support, but also support from an extremely important indicator, which is the 200-week SMA. This indicator takes the average of the last 200 weekly bitcoin prices and creates a line.
The indicator (blue line) served as a bottom for Bitcoin in several bear markets. Many investors also expected this in the recent bear market. Unfortunately, the price fell below this indicator and it took a lot of effort to get back above the line.
However, it worked and Bitcoin successfully broke the indicator resistance a few weeks ago. However, it is important that this broken resistance now acts as support. When that happens, we know we’re dealing with an ongoing wave that could lead to new heights. Therefore, it would be realistic for the price to follow the movement indicated by the blue arrow on the chart.
University degree
As mentioned earlier, the price is facing significant resistance at $28,600. It is not uncommon for the price to test the supports before breaking through this barrier. Initial support is about $25,000. This testing is not only healthy but also important to confirm the breakthrough above the 200 week SMA.
Source: Btc Direct
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
