Bitcoin Price Experiences Technical Correction, but Bullish Momentum Persists
The price of Bitcoin (BTC) recently made further gains and approached the resistance at $28,500. Following this, BTC underwent a corrective phase but has since found support at the $27,350 level.
Bitcoin continued its upward trajectory, surpassing key resistance levels at $28,000 and $28,200.
BTC is currently trading above $27,400 and is supported by the 100-hourly Simple Moving Average (SMA).
An important bullish trend line is taking shape, offering support at approximately $27,400 on the BTC/USD hourly chart (data from Kraken).
Unless the price drops below the $26,650 support level, Bitcoin could embark on another upward movement.
Bitcoin Price Maintains Strong Support
Bitcoin’s price embarked on a positive trend, breaking through the $27,200 resistance zone. It continued to climb, surpassing key levels at $27,500 and $28,000.
The price reached a new multi-week high around $28,565 before experiencing a downside correction. Subsequently, it dipped below the $28,200 and $28,000 levels. The correction also saw Bitcoin drop below the 50% Fibonacci retracement level of the upward swing from the $26,690 low to the $28,565 high.
Bitcoin’s Recent Price Movement: Correction and Support
Nevertheless, Bitcoin is currently trading above $27,400 and remains supported by the 100-hourly SMA. Additionally, a significant bullish trend line is forming, providing support at approximately $27,400 on the hourly BTC/USD chart.
Immediate resistance on the upside is located around the $27,850 level, followed by the key resistance at $28,000. A successful close above this level could pave the way for another upward movement.
If Bitcoin manages to breach the $28,000 resistance, it may aim for the $28,500 resistance. Further gains could potentially drive the price towards the $29,200 level.
Possible Downside Scenarios for BTC
Should Bitcoin struggle to surpass the $28,000 resistance, it could experience further downward movements. Immediate support on the downside is situated near the $27,400 level, in conjunction with the trend line.
Analyzing Key Levels and Scenarios for Bitcoin’s Price in the Current Market
The subsequent crucial support is around $27,250 or the 100-hour SMA. A break below and a close below the $27,250 level could lead to a downward move towards $26,800. The next support level after that is $26,650, and if this level is breached, Bitcoin may test $26,000.
Technical Indicators:
- Hourly MACD – The MACD is currently decelerating within 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.