Bitcoin price is correcting gains from USD 28,000. BTC could correct further towards the $26,800 zone before the bulls take a stand.
- Bitcoin started a downside correction from the USD 28,150 resistance zone.
- The price is trading above USD 26,600 and the 100 hourly Simple Moving Average.
- A bearish channel is forming with resistance near USD 27,250 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could extend its decline to $26,800 before attempting another rise.
Bitcoin Price Begins Downward Correction
Bitcoin price started a decent increase above the USD 27,000 resistance zone. BTC even climbed towards the USD 28,000 resistance zone before the bears appeared.
A high was formed around USD 28,150 and the price started a downside correction. There was a move below the USD 28,000 and USD 27,500 levels. The price even spiked below the USD 27,400 level. However, it found support near the 50% Fib retracement level of the main rise from the $25,928 swing low to the $28,150 high.
Bitcoin is still trading above $26,600 and the 100 Hourly Simple Moving Average. Moreover, a descending channel with resistance near USD 27,250 is forming on the hourly chart of the BTC/USD pair.
Immediate resistance on the upside is near the USD 27,200 level and channel trendline. The first major resistance is near the USD 27,400 level. A clear move above the USD 27,400 level could push the price towards USD 28,000. The next major resistance is near USD 28,150, above which there could be a sustained increase.
Source: BTCUSD at TradingView.com
In the case mentioned, the price could test the USD 29,200 level. Any further gains could set the pace for a bigger rise towards $30,500.
What is the main support in BTC?
If Bitcoin fails to clear the USD 27,400 resistance, it could continue to decline. The immediate downside support is near the USD 27,000 level.
The next major support is near the $26,800 level or the 61.8% Fib retracement level of the main rise from the $25,928 swing low to the $28,150 high. A downside break below the USD 26,700 level could put a lot of pressure on the bulls. 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 approaching the 50 level.
Key Support Levels – $27,000, followed by $26,700.
Key resistance levels – $27,400, $28,000 and $28,500.