Bitcoin price holds gains above the $26,200 zone. BTC seems to be setting a foundation for another surge above $26,850 in the coming sessions.
- Bitcoin is eyeing a major upside break above the USD 26,850 level.
- The price is trading above USD 26,100 and the 100 hourly Simple Moving Average.
- A major bullish trendline is forming with support near $26,300 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair appears to be gearing up for another rally above the $26,850 resistance.
Bitcoin price could rise above $27,000
Bitcoin price started a decent rise above the USD 26,000 resistance zone. BTC remained well above the Fib retracement level of the upward move from the $24,925 swing low to the $27,212 high.
There was a close above the $26,500 resistance zone. However, the bears appear to be protecting an upside break above the USD 26,850 resistance. The recent high was formed around $26,833 before another downward correction occurred.
There was a move towards the 50% Fib retracement level from the recent rise from the $26,154 swing low to the $26,833 high. Bitcoin is now trading above $26,100 and the 100 hourly Simple Moving Average. There is also a major bullish trendline forming with support around $26,300 on the hourly chart of the BTC/USD pair.
The immediate resistance on the upside is near the $26,720 level. The first major resistance is around the $26,850 level. The next major resistance could be near the $27,200 level.
Source: BTCUSD on TradingView.com
A successful move above the resistance at $26,850 and then a close above $27,200 could trigger a new bullish wave. The next major resistance is around $28,000, above which the bulls could gain strength. In the said case, the price could test the USD 28,800 level.
Another rejection in BTC?
If Bitcoin fails to start a new increase above the resistance at $26,850, it could continue to decline. The immediate downside support is near the $26,300 level and the trendline.
The trendline is close to the 76.4% Fib retracement level of the recent rise from the $26,154 swing low to the $26,833 high. The next major support is near the USD 26,000 level. A downside break and a close below the USD 26,000 level could send the price towards the key support at USD 25,550.
Technical indicators:
Hourly MACD – The MACD is now gaining speed in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Major support levels – USD 26,300, followed by USD 26,000.
Major resistance levels – $26,720, $26,850 and $27,200.