Bitcoin price pared yesterday’s losses and climbed above $26,500. BTC is now facing strong resistance again near the $27,400 area.
- Bitcoin started a fresh decline after it dropped towards the $25,500 support.
- The price is trading above $26,500 and the 100 hourly simple moving average.
- There was a break above a connecting bearish trend line with resistance near $26,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is now facing a major hurdle near the $27,400 and $27,500 levels.
Bitcoin price reconsiders by $27,500
Bitcoin price found support near the $25,400 region after a significant decline. BTC formed a base and managed to start a recovery wave above the $26,000 level.
There was a break above a downward trend line attached with resistance near $26,000 on the hourly chart of the BTC/USD pair. The pair managed to surpass the $27,000 resistance to move into the positive territory. However, the bears became active again near the $27,400 and $27,500 levels.
A top was formed near $27,368 and the price is now consolidating gains. It is trading above the 23.6% Fibonacci retracement level of the recent increase from the swing low $25,369 to $27,368.
Bitcoin price is trading above $26,500 and the 100 hourly simple moving average. The immediate resistance is near the $27,400 level. The next major resistance is near the $27,500 level. A close above $27,500 could lead the price higher.
source: BTCUSD on TradingView.com
The next major resistance is near the $28,000 level. A break-up and a close above $28,000 could lead to a decent increase towards $28,500. Any additional gains above the $28,500 resistance area could send the price towards the $29,500 resistance area.
New drop in bitcoin?
If bitcoin price fails to clear the $27,400 resistance, it could start falling again. There is immediate support on the downside near the $26,800 level and the hourly 100 simple moving average.
The next major support is near $26,400 region or the 50% Fibonacci retracement level of the recent increase from $25,369 swing low to $27,368 high, below which price could regain bearish momentum. In the mentioned case, the price might decline towards the $26,000 support.
Technical indicators:
Hourly MACD – The MACD is gaining pace now in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is above level 50.
Major support levels – $26,400, followed by $26,000.
Major resistance levels – $27,400, $27,500, and $28,500.
