Bitcoin price began a downward correction from the high of $ 28,360 against the US dollar. BTC stayed well bid above $ 26,000 and is likely to climb back towards $ 28,000.
- Bitcoin is showing many positive signs above the USD 26,000 support zone.
- The price is currently trading above the $ 26,500 support and the 100 hour simple moving average.
- On the hourly chart of the BTC / USD pair (data feed from Kraken) there was a break above a large contraction triangle with resistance near USD 26,800.
- The pair is likely to continue rising towards the $ 28,000 and $ 28,400 resistance levels.
Bitcoin price shows bullish signs
In the past few days, Bitcoin price rose sharply above the USD 25,000 resistance. BTC even surged above the $ 26,500 and $ 27,000 resistance levels. Eventually, the price rose above the $ 28,000 level and was well above the 100-hour simple moving average.
A new all-time high was formed near $ 28,360 before the price began a downward correction. It traded well below the $ 27,000 level. There was also a break below the 50% Fib retracement level of the move up from the $ 24,532 low to the $ 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 move up from the $ 24,532 swing low to the $ 28,361 high also provided strong support.
Bitcoin price rose again above the USD 26,500 resistance. There was also a break above a large contraction triangle with resistance near USD 26,800 on the hourly chart of the BTC / USD pair. The pair is now trading above the $ 27,000 level.
Initial resistance to the upside is near the $ 27,275 level. A significant break above the $ 27,275 resistance could open the doors for a new run towards the $ 28,000 and $ 28,400 levels in the short term.
Fresh drop in BTC?
If Bitcoin fails to hit the $ 27,275 resistance level, it could correct lower. Initial downside support is near the USD 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 continued downward movement in the upcoming 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.
Main Resistance Levels – $ 27,275, $ 28,000, and $ 28,400.
