Bitcoin price started a downside correction from the $28,360 high against the US Dollar. BTC remained well bid above $26K, and it is likely to resume higher towards $28K.
- Bitcoin is showing a lot of positive signs above the $26,000 support zone.
- The price is currently trading above the $26,500 support and the 100 hourly simple moving average.
- There was a break above a major contracting triangle with resistance near $26,800 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is likely to continue higher towards the $28,000 and $28,400 resistance levels.
Bitcoin Price is Showing Bullish Signs
In the past few days, there was a strong increase in bitcoin price above the $25,000 resistance. BTC even surged above the $26,500 and $27,000 resistance levels. Finally, the price surged above the $28,000 level and settled well above the 100 hourly simple moving average.
A new all-time high was formed near $28,360 before the price started a downside correction. It traded sharply below the $27,000 level. There was also a break below the 50% Fib retracement level of the upward move from the $24,532 swing low to $28,361 high.
Source: BTCUSD on TradingView.com
However, the bulls were active around the $26,000 support level. The 61.8% Fib retracement level of the upward move from the $24,532 swing low to $28,361 high also acted as a strong support.
Bitcoin price started a fresh increase above the $26,500 resistance. There was also a break above a major contracting triangle with resistance near $26,800 on the hourly chart of the BTC/USD pair. The pair is now trading above the $27,000 level.
An initial resistance on the upside is near the $27,275 level. A clear break above the $27,275 resistance could open the doors for a fresh run towards the $28,000 and $28,400 levels in the near term.
Fresh Drip in BTC?
If bitcoin fails to clear the $27,275 resistance level, it could correct lower. An initial support on the downside is near the $26,800 zone and the broken triangle trend line.
The first major support is near the $26,500 level. The main support is still near the $26,000 level, below which there is a risk of a sustained downward move in the coming sessions.
Technical indicators:
Hourly MACD – The MACD is gaining momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently well above the 50 level.
Major Support Levels – $26,500, followed by $26,000.
Major Resistance Levels – $27,275, $28,000 and $28,400.
