Bitcoin bulls fooled by false breakout, BTC price will drop below $28,800
- Bitcoin price jumped higher and broke a critical level of resistance.
- However, no technical or fundamental levels have been reclaimed.
- BTC seems ready to drop lower and retest the $28,776 level.
Bitcoin price jumped higher on the opening of the week and broke a crucial descending trend line from May. Regardless, BTC dipped below, and a bull-trap formed $28,776 as a target to the downside.
Bitcoin price looks weak
Bitcoin price painted a pretty upside picture these past few days following the panic in the markets two weeks ago. On Monday morning, BTC even broke the important orange descending trend line from May, as seen in the image below.
Nonetheless, the tables have turned during the session today. As Bitcoin price moves back below that trend line, it is looking for a floor.
The first floor of any interest is around $33,500. If that level breaks, Bitcoin price has no further support until $28,776, which was the low on May 19 and June 22.
Both times Bitcoin price action bounced off that level, but a third test might be one too many.
BTC/USD daily chart
Bitcoin price looks to be falling into a bull-trap. The dip to the downside will first halt around $33,500 before retesting a third time at the $28,776 level.
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FXStreet Team
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