Bitcoin price is currently displaying positive signs as it holds above the $27,450 zone. With the price trading above $27,800 and the 100 hourly Simple Moving Average (SMA), there is a potential for a fresh increase towards the $28,500 resistance. The BTC/USD pair has also formed a short-term declining channel with resistance near $27,980 on the hourly chart.
Earlier, Bitcoin faced a setback in its attempt to break the $28,500 resistance zone, resulting in a downside correction. The price dropped below the $28,000 level and tested the $27,200 support zone. However, the bulls managed to push the price up again, surpassing the $27,400 and $27,500 resistance levels. The recent high of $28,284 is currently followed by a consolidation phase below the 23.6% Fibonacci retracement level.
Testing Resistance with Potential for Increase
Bitcoin currently trades above $27,800 and the 100 hourly SMA, and it is now testing the $28,000 resistance zone. The next key resistance level to watch out for is near $28,500. A breakthrough above this level could potentially trigger another increase, with the price possibly rising towards the $29,200 resistance. Further gains might even propel Bitcoin towards the significant $30,000 level.
However, should Bitcoin fail to surpass the $28,000 resistance, a fresh decline may occur. The immediate support on the downside is around the $27,800 level and the 100 hourly SMA. The next significant support level is located near $27,450, while the main support lies around $27,200. A downside break and close below this level could lead to further declines, potentially pushing the price towards $26,650 in the near term. Additionally, the subsequent support sits at $26,200.
Technical Indicators
Looking at the technical indicators, the hourly Moving Average Convergence Divergence (MACD) for BTC/USD reveals that it is gaining momentum in the bullish zone. The Relative Strength Index (RSI) is also currently above the 50 level, indicating a positive trend for Bitcoin.
Bitcoin is currently displaying positive signs and attempting to surpass the $28,000 resistance. If successful, it could open the door for further gains, potentially reaching the $29,200 resistance and even the significant $30,000 level. Conversely, a failure to break resistance may result in a fresh decline, with major support levels at $27,200 and $26,650 in sight. Traders and investors should closely monitor these key levels and keep an eye on technical indicators to gauge the potential movement of Bitcoin in the near term.
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