The price of bitcoin was unable to break through the $28,500 resistance zone, which prompted a downward price reaction. A pessimistic response was observed after the Federal Reserve raised interest rates from 4.75 percentage points to 5 percentage points. BTC fell to a price that was lower than the $27,500 support zone.
On the hourly chart of the BTC/USD pair, there was a breach below an important bullish trend line that had support near $27,900. This trend line was located near the $27,900 area. Even lower than that, trades took place below the $27,000 threshold. The price has reached a low somewhere close to $26,623, and it is currently correcting its losses.
The price of bitcoin broke above the 23.6% Fib retracement level of the decline that began when it reached a high of $28,879 and ended when it reached a low of $26,623. It is currently trading at a price that is lower than $27,800 as well as the 100 hourly simple moving average.
To the upside, an immediate barrier of resistance can be found close to the level of $27,750, and current trading levels are lower than $27,800 as well as the 100 hourly simple moving average. It is quite close to the 50% Fib retracement level of the decline that began from the swing high of $28,879 and ended at the low of $26,623.
The next significant barrier to overcome is located close to the $28,000 zone. A sustained break above the $28,000 resistance level may signal the beginning of another significant climb. Given the scenario described, there is a chance that the price will go closer to the level of $28,500. Any further advances might potentially drive the price into the zone of resistance at $28,850.
If the price of bitcoin is unable to break through the resistance level of $28,000, it may start another drop. The region around the $27,000 price point acts as an immediate support on the downside.
The region around $26,600 represents the next significant area of support. Should there be any further selling pressure, the price may go closer to the $26,000 support zone. The area around the $25,200 price point constitutes the next significant support.