- Bitcoin is correcting gains below the $28,000 support area.
- The price is trading above $27,500 and is above the hourly 100 simple moving average.
- Bulls may start a new increase if they manage to hold the $27,500 support.
The price of Bitcoin is consolidating gains around $28,400. BTC needs to stay above the $27,500 support in the near term to start a new increase.
Bitcoin Holds Above $27,500
The price of Bitcoin started a decent increase above the $28,000 resistance area. However, BTC struggled to surpass the $28,400 and $28,500 resistance levels.
A peak was formed around $28,450 and the price started a downside correction. A move below the $28,000 support area occurred. The price fell below the 50% Fib retracement level of the upward move from the $27,143 low to $28,450 high.
Additionally, a major bullish trend line was broken around $27,720 on the hourly BTC/USD chart. Bitcoin price is still trading above $27,500 and the 100 hourly simple moving average.
BTC/USD 1 Hour Price Chart
The price is finding buyers near the 61.8% Fib retracement level of the upward move from the $27,143 low to $28,450 high. The next major resistance level is around $28,000. The next important resistance level is around $28,400.
Above $28,000, an upward move could send the price towards the $28,500 major resistance. A close above the $28,500 resistance area could trigger a strong increase towards the $29,200 resistance area. The next major resistance level is around $29,400, above which the price may tend to rise towards the $30,000 resistance.
Can BTC Continue to Decline?
If the price of Bitcoin cannot surpass the $28,000 resistance, the downward trend may continue. The immediate support level is around $27,580.
The next major support area is around $27,500, and falling below this level could cause the price to gain bearish momentum. In this case, the price may fall towards the $27,150 support level and the 100 hourly simple moving average.
Technical indicators:
- Hourly MACD – MACD is currently losing momentum in the bearish market zone.
- Hourly RSI (Relative Strength Index) – RSI for BTC/USD is above the 50 level.
- Important Support Levels – $27,580, followed by $27,500.
- Important Resistance Levels – $28,000, $28,400, and $28,500.
