Bitcoin continues its move to the downside

The price a bitcoin reached a new low just above the $28,000 level at $28,005. The current price trades at $28,128.

Looking at the hourly chart, the price has moved down to test its 38.2% retracement of the move up from the March 10 low to the high price reached last week on April 14. That retracement level comes in at $27,991. Today, the price got within $14 of that target retracement level. Buyers leaned on the first test. Going forward, a move below the level would have traders looking toward the April 6 low near $27,723.

Going back in time, the price of bitcoin traded within a narrowing range from March 27 to April 10 (see converging trendlines during that period). Finally on April 10, the price broke higher and did not stop until reaching a new cycle high of $31,035. That price to the highest level since June 2022.

Sellers are now making a play, on a move back below that upward sloping trend line near $28890. That is now a risk level for sellers. However, if sellers are to take more control, getting below the 38.2% retracement at and stay below that level at $27,991 is needed to increase the bearish bias from a technical perspective.

This article was written by Greg Michalowski at Source