Bitcoin Price Sees Technical Correction But The Bulls Are Not Done Yet

Bitcoin

Bitcoin price extended its increase toward the $28,500 resistance. BTC corrected gains and is currently holding a key support at $27,350.

Bitcoin Price Remains Supported

Bitcoin price started a decent increase above the $27,200 resistance zone. BTC climbed higher steadily above the $27,500 and $28,000 resistance levels.

The price tested the $28,500 resistance. A new multi-week high was formed near $28,565 before it saw a downside correction. Finally, the price saw a downside correction below the $28,200 and $28,000 levels. It even moved below the 50% Fib retracement level of the upward move from the $26,690 swing low to the $28,565 high.

Bitcoin is still trading above $27,400 and the 100 hourly Simple moving average. Besides, there is a major bullish trend line forming with support near $27,400 on the hourly chart of the BTC/USD pair.

Immediate resistance on the upside is near the $27,850 level. The next key resistance could be near the $28,000 level. A close above the $28,000 resistance could start another increase.

Source: BTCUSD on TradingView.com

In the stated case, the price could climb toward the $28,500 resistance. Any more gains might call for a move toward the $29,200 level.

More Losses In BTC?

If Bitcoin fails to continue higher above the $28,000 resistance, there could be more downsides. Immediate support on the downside is near the $27,400 level and the trend line.

The next major support is near the $27,250 level or the 100 SMA. A downside break and close below the $27,250 level might send the price toward $26,800. The next support sits at $26,650. Any more losses might call for a test of $26,000.

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 now below the 50 level.

Major Support Levels – $27,250, followed by $26,650.

Major Resistance Levels – $28,000, $28,500, and $29,200.

Exit mobile version