Bitcoin Price Looks Ready To Begin Recovery Towards $27K, Here’s Why

Bitcoin price is forming a base above the $25,500 support. If it clears the key $26,200 resistance area in the near term, BTC could start a fresh increase.

• Bitcoin is holding the key $25,500 support area and consolidating.
• The price is trading well above the $26,000 and 100 hourly simple moving averages.
• There is a major ascending channel forming with support near $25,750 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could start a recovery wave if there is an increase above the $26,200 resistance.

Bitcoin price may recover soon

Bitcoin price is still trading above the $25,400 support area. BTC remained supported following the release of the US CPI report, which pegged inflation down to 4% in May 2023.

The price is slowly correcting above the $25,800 level. It cleared the 50% Fib retracement level of the recent decline from the $26,260 high to $25,713 low. Moreover, there is a major ascending channel forming with support near $25,750 on the hourly chart of the BTC/USD pair.

Bitcoin price is now trading above the $26,000 and 100 hourly simple moving averages. It seems to be facing resistance near the $26,150 level or the 76.4% Fib retracement level of the recent decline from the $26,260 high to $25,713 low.

The first major resistance is near the $26,200 level. A clear move above the $26,200 resistance could start a fresh increase. The next major resistance is near the $26,775 level, above which the bulls could send BTC towards the $27,000 resistance area.

Source: BTCUSD on TradingView.com

The next major resistance is near the $27,200 level, above which bitcoin could move higher towards the $27,500 resistance. Any further gains above the $27,500 resistance area could send the price towards the $28,000 resistance area.

Fresh decline in BTC?

If bitcoin price fails to overcome the $26,200 resistance, it could start another decline. On the downside, an immediate support is near the $25,780 level and the channel area.

The next major support is near the $25,500 level, below which the price may struggle to stay in a positive zone. In the mentioned case, the price could decline towards the $25,000 support in the near term.

Technical Indicators:

Hourly MACD – The MACD is now losing momentum in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is above the 50 level.

Key Support Levels – $25,750, followed by $25,500.

Key Resistance Levels – $26,150, $26,200 and $26,775.