Bitcoin Price Drops Again But This Support Could Rise With Renewal

Bitcoin price is struggling to clear the $27,500 resistance. BTC could attempt another increase if it stays above the $27,000 support.

• Bitcoin is still struggling to gain momentum above the $27,400 and $27,500 levels.
• The price is trading well above the $27,000 and 100 hourly simple moving averages.
• There was a break above a key bearish trend line with resistance near $27,140 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could start a fresh increase if there is a hold above the $27,000 pivot level.

bitcoin revisits price support

Bitcoin price started a decent increase from the $26,550 area. BTC was able to clear the $26,850 and $27,000 resistance levels. It also took some positive steps towards Ethereum.

During the rise, there was a break above a key bearish trend line with resistance near $27,140 on the hourly chart of the BTC/USD pair. The pair climbed above the $27,400 resistance but there was no continuation to the upside. There formed a high near $27,511 and the price is now correcting lower.

There was a move below the 23.6% Fibonacci retracement level of the upward move from the $26,536 low to $27,511 high. Bitcoin price is now trading above the $27,000 level and the 100 hourly simple moving average. It also tested the broken trend line at $27,150.

An immediate resistance on the upside is near the $27,280 level. The next major resistance is near the $27,400 level. The main resistance is still near the $27,500 level. A close above the $27,500 resistance area could send the price towards the $28,200 resistance area.

Source: BTCUSD on TradingView.com

The next major resistance is near the $28,500 level, above which the price could start a strong increase towards the $29,200 resistance level. Any further gains could send the price towards the $30,000 level.

Fresh decline in BTC?

If bitcoin price fails to overcome the $27,500 resistance, it could start another decline. On the downside, an immediate support is near the $27,000 level and the 100 hourly simple moving average.

There is also the 50% Fibonacci retracement level of the upward move from the $26,536 low to $27,511 high near $27,000. The next major support is near the $26,850 area, below which the price could revisit the $26,550 support. Any further losses could take bitcoin towards the $26,000 level in the near term.

Technical Indicators:

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

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

Key Support Levels – $27,000, followed by $26,550.

Key Resistance Levels – $27,280, $27,400 and $27,500.