Bitcoin price surged above USD 26,500 and USD 27,000. BTC tested the USD 28,000 resistance zone and it is currently correcting lower towards USD 27,000.
- Bitcoin took a jump and managed to break the USD 26,500 resistance zone.
- The price is trading above $26,500 and the 100 hourly Simple Moving Average.
- There was a break above a key bearish trendline with resistance around $26,100 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is correcting gains but could find bids near $27,000 or $26,700.
Bitcoin price regains strength
Bitcoin’s price started a decent rally after news that a US court ruled in Grayscale’s favor against the SEC, opening the doors for ETF. BTC gained speed and managed to break the USD 26,500 resistance zone.
There was a steady increase and the price even broke the USD 27,500 resistance zone. Finally, it tested the $28,000 resistance zone. A high is forming near USD 28,150 and the price is now correcting gains. There was a small decline below the USD 27,800 level.
The price traded below the 23.6% Fib retracement level of the upward move from the $25,927 swing low to the $28,150 high. However, Bitcoin is still trading above $26,500 and the 100 Hourly Simple Moving Average.
Source: BTCUSD at TradingView.com
If there is a fresh increase, immediate resistance is near the USD 27,650 level. The first major resistance is near the USD 28,000 level. A clear move above the USD 28,000 level could push the price towards USD 28,500. The next major resistance is near USD 29,200, above which there could be a sustained increase. In the case mentioned, the price could test the USD 30,000 level. Any further gains could set the pace for a bigger rise towards USD 31,200.
Are dips limited in BTC?
If Bitcoin fails to clear the USD 28,000 resistance, it could continue to decline. The immediate downside support is near the USD 27,000 level.
The next major support is near the $26,700 level or the 61.8% Fib retracement level of the upward move from the $25,927 swing low to the $28,150 high. A downside break below the USD 26,700 level could push the price into a bearish zone again. In the said case, the price could fall towards USD 26,000.
Technical indicators:
Hourly MACD – The MACD is now losing pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Key Support Levels – $27,000, followed by $26,700.
Key resistance levels – $28,000, $28,500 and $29,200.