Bitcoin’s price has initiated a correction below the $28,000 mark, currently testing the support at $27,200, with the possibility of a near-term rebound.
Bitcoin is currently trading below key support levels at $28,000 and $27,800.
The price is also below $27,500 and the 100-hourly Simple Moving Average (SMA).
On the hourly chart of the BTC/USD pair, a short-term bearish trend line has formed, with resistance around $27,500.
The pair could potentially rise again unless it breaches the support at $26,650.
Bitcoin’s price has revisited the support level. Despite a failed attempt to sustain gains above $28,500, BTC experienced a short-term peak and initiated a correction below $28,000.
This correction led to a drop below the $27,500 level and the 100-hourly Simple Moving Average (SMA). Currently, the price is testing the support at $27,200. It reached a low of around $27,189 and is now consolidating losses with limited signs of further declines.
Bitcoin is presently trading below both the $27,500 resistance and the 100-hourly SMA. On the upside, immediate resistance is located around the $27,500 level. Additionally, there is a short-term bearish trend line forming on the BTC/USD hourly chart with resistance near $27,500. This trend line is close to the 23.6% Fibonacci retracement level of the recent decline from the $28,565 swing high to the $27,189 low.
The next significant resistance could be near $27,880 or the 50% Fibonacci retracement level of the recent decline from the $28,565 swing high to the $27,189 low. A successful break above the $27,880 resistance might trigger another upward move, potentially leading the price towards the $28,500 resistance level. Further gains could even push it to $29,200 in the coming days.
On the flip side, if Bitcoin fails to surpass the $27,500 resistance, there may be further downsides. Immediate support on the downside is at the $27,200 level, followed by the critical $26,800 level. A downside break and a close below $26,800 might push the price towards $26,200, with the next support level lying at $26,000.
Key technical indicators:
- Hourly MACD: The MACD is losing bullish momentum.
- Hourly RSI (Relative Strength Index): The RSI for BTC/USD is currently below the 50 level.
Major support levels:
- $27,200, followed by $26,800
Major resistance levels:
- $27,500, $27,880, and $28,500
Bitcoin’s next moves are crucial in determining its short-term direction, with potential for both a rebound or a further decline depending on how it interacts with these support and resistance levels.