Bitcoin price corrects gains of $28,400. BTC must stay above the $27,500 support to start a fresh increase in the near term.
- Bitcoin corrects gains below the $28,000 support zone.
- The price is trading above $27,500 and the 100 hourly simple moving average.
- There was a break below a major bullish trendline with support near USD 27,720 on the BTC/USD pair hourly chart (Kraken data feed).
- The pair could start another rise if the bulls manage to protect the $27,500 support.
Bitcoin price corrects lower
Bitcoin price started a decent increase above the $28,000 resistance zone. However, BTC struggled to clear the $28,400 and $28,500 resistance levels.
A high was formed near $28,450 and the price started a downside correction. There was a move below the $28,000 support zone. The price fell below the 50% Fib retracement level of the upward move from the $27,142 swing low to the $28,450 high.
Moreover, there was a break below a major bullish trendline with support near USD 27,720 on the hourly chart of the BTC/USD pair. Bitcoin price is still trading above $27,500 and the 100 simple hourly moving average.
It finds bids near the 61.8% Fib retracement level of the upward move from the $27,142 swing low to the $28,450 high. Immediate resistance on the upside is near the $27,800 level. The next major resistance is near the $28,000 level.
Source: BTCUSD at TradingView.com
An upside break above $28,000 could send the price towards the main $28,500 resistance. A close above the $28,500 resistance zone could begin a strong rise towards the $29,200 resistance zone. The next key resistance is near $29,400, above which the price could move towards the $30,000 resistance.
Lose more 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 $27,580 level.
The next key support is near the USD 27,500 zone, below which the price could gain bearish momentum. In the said case, the price could fall towards the $27,150 support and the 100 Simple hourly moving average.
Technical indicators:
Hourly MACD – The MACD is now losing pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is above the 50 level.
Major Support Levels – $27,580, followed by $27,500.
Major resistance levels – $28,000, $28,400 and $28,500.
