Bitcoin Price Prints Bullish Technical Pattern, Why Close Above $28,500 Is Critical

Bitcoin

Bitcoin price is up 4% and trading above $28,000. BTC must clear the $28,500 resistance zone to continue higher in the near term.

Bitcoin Price Recovers Over 4%

Bitcoin price managed to stay above the $26,000 support zone. BTC formed a base and started a recovery wave above the $27,000 resistance.

There was a steady increase once the price cleared the $27,500 resistance zone. It is up over 4% and there was a break above the $28,000 resistance. A high is formed near $28,450 and the price is now consolidating gains. It is trading near the 23.6% Fib retracement level of the upward move from the $27,143 swing low to the $28,450 high.

Bitcoin price is now trading above $28,000 and the 100 hourly Simple moving average. There is also a key bullish trend line forming with support near $27,700 on the hourly chart of the BTC/USD pair.

Immediate resistance on the upside is near the $28,320 level. The next major resistance is near the $28,500 level. A close above the $28,500 resistance zone might send the price toward the $29,200 resistance zone.

Source: BTCUSD on TradingView.com

The next key resistance is near $29,500, above which the price might rise toward the $30,000 resistance. Any more gains might send the price toward the $31,200 resistance level.

Are Dips Limited in BTC?

If Bitcoin’s price fails to clear the $28,500 resistance, it could start a downside correction. Immediate support on the downside is near the $28,000 level.

The next major support is near the $27,700 zone or the 50% Fib retracement level of the upward move from the $27,143 swing low to the $28,450 high, below which the price might test the $27,500 support. Any more losses might take Bitcoin toward the $27,200 level in the near term.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is in the overbought zone.

Major Support Levels – $28,000, followed by $27,700.

Major Resistance Levels – $28,320, $28,500, and $29,200.

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