BTC Price Prediction: Increased Supply at $28000 Threatens 10% Correction in Bitcoin

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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.

Also Read: What Are Bitcoin Ordinals And How Do They Work?

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.