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Bitcoin price is recovering above the $27,000 resistance. BTC must clear the $27,800 resistance to start a decent increase in the near term.
- Bitcoin tested the $26,000 support area and it is currently recovering higher.
- The price is trading above the $26,500 and 100 hourly simple moving averages.
- There was a break above a key bearish trend line with resistance near $27,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is likely to continue higher if it overcomes the $27,500 and $27,800 resistance levels.
Bitcoin Price Begins Recovery
Bitcoin price declined below the $27,000 support area. BTC even declined below the $26,200 level before the bulls appeared.
A low was formed near $25,851 and the price is now recovering losses. There was a decent upside move above the $26,500 resistance. There was a break above a key bearish trend line with resistance near $27,000 on the hourly chart of the BTC/USD pair.
Bitcoin price is now trading above the 50% Fibonacci retracement level of the $28,334 high to $25,851 low. It is also trading above the $26,500 and 100 hourly simple moving averages.
An immediate resistance is now forming near the $27,400 level. It is close to the 61.8% Fib retracement level of the decline from the $28,334 high to $25,851 low. The next major resistance is near the $27,800 level.
Source: BTCUSD on TradingView.com
A close above the $27,800 resistance could start a nice move higher. The next major resistance is near the $28,000 level, above which the price could climb higher towards the $28,500 resistance.
More Losses in BTC?
If bitcoin price fails to overcome the $27,400 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.
The next major support is near the $26,500 area, below which the price could start a decline. In the mentioned case, it could revisit the $26,000 level. Any further losses could take bitcoin towards the $25,500 level in the near term. The next major support could be $25,000.
Technical Indicators:
Hourly MACD – The MACD is now gaining momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well above the 50 level.
Key Support Levels – $27,000, followed by $26,500.
Key Resistance Levels – $27,400, $27,800 and $28,000.
