Bitcoin Shows Early Indications of a Potential Dip Below $27,200

By: Eliza Bennet

Bitcoin (BTC), the world's largest cryptocurrency, seems to be struggling for a fresh surge above the $27,800 resistance level, call for possible decline grows louder. The Crypto Asset has been continuously facing resistance and is currently trending below $27,700.

A breakdown below the key support of $27,200 could intensify downward pressure. Having experienced a rejection at 61.8% Fib retracement level of the downward move from the $28,565 swing high to $27,189 low, Bitcoin has witnessed a dip below $27,500, down from the $27,850.

TradingView data shows a break in a key ascending channel with support near $27,650, adding to the uncertainties. The currency is trading under the 100 hourly Simple Moving Average (SMA) causing worries for investors.

On the flip side, a break above the $28,000 resistance might trigger a fresh surge, pushing prices towards $28,500, and further to $29,200.

If BTC fails to cross the resistance threshold, subsequent losses could be seen, pushing BTC further towards $26,800 or even the $26,200 support levels. Some traders suggest that changes in the trading behavior of whales may be one of the underlying reasons of this struggle.

As per Kraken's feed data, the pair BTC/USD will continue to see downward pressure if it closes below the $27,200 support.