Bitcoin price started a downward correction from the as high as $ 28,360 against the US dollar. BTC continued to bid well above USD 26K, and it is likely to move higher towards USD 28K.
- Bitcoin is showing many positive signs above the USD 26,000 support zone.
- The price is currently trading above the USD 26,500 support and the 100-hour easy moving average.
- There was a break above a large contracting triangle with resistance near USD 26,800 on the hourly chart of the BTC / USD pair (Kraken data feed).
- The pair is likely to remain higher towards the USD 28,000 and USD 28,400 resistance levels.
Bitcoin price is showing bullish signals
There was one in the last few days strong growth in bitcoin price above the USD 25,000 resistance. BTC even surged above the USD 26,500 and USD 27,000 resistance levels. Finally, the price skyrocketed above the USD 28,000 level and came well above the 100 simple hourly moving average.
An all-time new record was set at $ 28,360 before the price started a downward correction. It traded sharply below the USD 27,000 level. There was also a break below the 50% Fib retracement level from the upward move from the $ 24,532 swing low to the $ 28,361 high.
Source: BTCUSD on TradingView.com
However, the bulls were active around the USD 26,000 support level. The 61.8% Fib retracement level of the upward move from the USD 24,532 swing low to the USD 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 large contracting triangle with resistance at USD 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 USD 27,275 level. A clear break above the USD 27,275 resistance could open the doors for another run to the USD 28,000 and USD 28,400 levels in the near term.
Fresh Drip in BTC?
If bitcoin fails to hit the USD 27,275 resistance level, it may correct lower. An initial downside support is near the $ 26,800 zone and the dashed triangle trendline.
The first major support is near the USD 26,500 level. The main support is still near the USD 26,000 level, below which there is a risk of continued downward movement in the coming sessions.
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.
Key Support Levels – USD 26,500, followed by USD 26,000.
Major Resistance Levels – USD 27,275, USD 28,000 and USD 28,400.