Bitcoin price failed to clear the USD 28,500 resistance and corrected lower. BTC has retested the USD 27,250 support and is currently attempting another increase.
- Bitcoin is making gains and still consolidating above the $27,250 zone.
- The price is trading below $27,800 and the 100 hourly Simple Moving Average.
- A major bearish trendline is forming with resistance near $27,780 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could struggle to break the $27,800 and $28,500 resistance levels in the near term.
Bitcoin price faces major hurdles
Bitcoin price started a decent rise above the USD 27,800 resistance. However, BTC failed to remain in a positive zone and revisited the USD 28,500 resistance zone.
There was a steady decline below the $28,000 level. The price fell below the USD 27,500 level, but the bulls were active above the USD 27,250 support zone. A low formed around $27,275 and the price is now rising. There was a move above the USD 27,500 level.
Bitcoin climbed above the 23.6% Fib retracement level of the recent decline from the high of $28,284 to the high of $27,275. It is now trading below $27,800 and the 100 hourly Simple Moving Average.
Furthermore, a major bearish trendline is forming with resistance around $27,780 on the hourly chart of the BTC/USD pair. The immediate resistance on the upside is near the $27,780 level and the trendline. It is close to the 50% Fib retracement level of the recent decline from the high of $28,284 to the high of $27,275.
Source: BTCUSD on TradingView.com
The next major resistance could be near the $28,100 level. The first major resistance is $28,250, above which Bitcoin could test $28,500. A close above the USD 28,500 resistance could trigger a fresh rise. In the mentioned case, the price could rise towards the USD 29,200 resistance. Further gains could require a move towards the $30,000 level.
Another drop in BTC?
If Bitcoin fails to hold higher above the USD 27,780 resistance, another decline could occur. The immediate downside support is near the USD 27,500 level.
The next major support is near the $27,250 level. A downside break and a close below the $27,250 support could lead to strong bearish moves. The next support is at $26,200.
Technical indicators:
Hourly MACD – The MACD is now gaining speed in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Major support levels – USD 27,500, followed by USD 27,250.
Major resistance levels – $27,780, $28,250 and $28,500.
