Bitcoin price rallied and retested the $28,000 twice but failed to break the resistance convincingly. In the first retest, the crypto fell to $26,200 low.
In the second attempt, buyers pushed BTC to $28,587 high but were repelled. Bitcoin price is retracing to the previous low. It has fallen back to the previous price range of $26,200 and $28,000. The crypto is most likely to fluctuate in the current price range to determine its direction.
In the current price range, if the bulls break the $28,000 resistance, a rally above $29,000 is likely. However, it is not certain if Bitcoin will attain the new psychological price level of $30,000. Conversely, if sellers break the $26200 support, this can be a reversal that will take the coin to $19,500 low. On the daily chart, the daily stochastic and the RSI are indicating that Bitcoin has reached the overbought region of the market. That shows that Bitcoin has no room to rally on the upside. The upside momentum will resume after a retracement.
Sellers are likely to emerge to push BTC price downward. The crypto will fall to the low above $26,000 support as the market reaches the overbought region. The upward move will resume if the price finds support above $26,000. Otherwise, the selling pressure will persist.
Key Resistance Zones: $28,000, $29,000, $30,000
Key Support Zones: $15,000, $14,000, $13,000
The Fibonacci tool analysis is likely to be attained if the upside momentum resumes. On December 26 uptrend; a retraced candle body tested the 61.8 % Fibonacci retracement level. The retracement indicates that BTC price is likely to rise to level 1.618 Fibonacci extension level. That is a high of $31,203.90.
Disclaimer. This analysis and forecast are the personal opinions of the author that are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing funds.