Bitcoin price is consolidating above the $27,500 support. BTC could start a fresh increase unless there is a clear move and it would close below USD 27,500.
- Bitcoin is still holding the key support zone at $27,500.
- The price is trading above $27,550 and the 100 hourly simple moving average.
- A major bearish trendline is forming with resistance near USD 27,850 on the BTC/USD pair hourly chart (Kraken data feed).
- The pair could start another rise if there is a break above the $28,000 resistance zone.
Bitcoin price holds support
Bitcoin price began a downside correction after failing to clear the $28,500 resistance zone. BTC moved below the USD 28,200 and USD 28,000 levels.
There was also a decline below the USD 27,800 level, but the bulls were active near the USD 27,500 support. A low is formed near $27,559 and the price is now consolidating. There was already a test of the 50% Fib retracement level from the recent drop from the $28,045 swing high to the $27,559 low.
Bitcoin price is now trading above $27,550 and the 100 hourly simple moving average. A major bearish trendline is also forming with resistance near USD 27,850 on the hourly chart of the BTC/USD pair.
Immediate resistance on the upside is near the $27,850 level and trendline. The next major resistance is near the $28,000 level or the 76.4% Fib retracement level from the recent drop from the $28,045 swing high to the $27,559 low.
Source: BTCUSD at TradingView.com
An upside break and close above USD 28,000 could lead to a steady rise towards USD 28,500. If the bulls manage to clear the $28,500 resistance zone, the price could be sent to the $29,200 resistance zone. The next key resistance is near $29,500, above which the price could move towards the $30,000 resistance.
Interruption in BTC?
If the price of Bitcoin fails to clear the $28,000 resistance, it could fall further. Immediate support on the downside is near the $27,550 level.
The next key support is near the $27,500 zone and the 100 hourly SMA, below which the price may start a steady decline. In the said case, the price could drop towards the $27,000 support.
Technical indicators:
Hourly MACD – The MACD is now gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is below the 50 level.
Major Support Levels – $27,550 followed by $27,500.
Major resistance levels – $28,000, $28,400 and $28,500.
