Bitcoin price is consolidating above the USD 26,550 level. BTC could correct higher but the upside could be limited to the USD 27,400 and USD 27,500 resistance levels.
- Bitcoin finds bids near the $26,550 level.
- The price is trading below $27,200 and the 100 hourly Simple Moving Average.
- A major bearish trendline is forming with resistance around $26,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could correct higher, but the bears could remain active near the $27,500 zone.
Bitcoin price holds support
Bitcoin price started declining again after the USD 27,500 resistance. BTC traded below the USD 27,000 level and entered a bearish zone. Finally, the bulls emerged above the USD 26,500 support.
The price remained well bid around the $26,550 level. The bears made two attempts to push the price below $26,550, but failed. A low is formed near $26,551 and the price is now consolidating losses below the 23.6% Fib retracement level of the downward move from the $28,285 swing high to the $26,551 low.
Bitcoin is now trading below $27,200 and the 100 hourly Simple Moving Average. There is also a major bearish trendline forming with resistance around $26,200 on the hourly chart of the BTC/USD pair.
The immediate resistance is near the $26,950 level. The first major resistance is $27,200 and the 100 hourly Simple Moving Average. The next major resistance could be $27,400 and the trendline. It is close to the 50% Fib retracement level of the downward move from the $28,285 swing high to the $26,551 low.
Source: BTCUSD on TradingView.com
A close above the USD 27,500 resistance could trigger a steady rise towards the USD 28,000 level. The main hurdle is still $28,500, above which the price could rise again. In the mentioned case, the price could rise towards the USD 30,000 resistance.
Lose more in BTC?
If Bitcoin fails to recover higher than the USD 27,200 resistance, more losses could occur. The immediate downside support is near the USD 26,550 level.
The next major support is near the $26,500 level. A downside break and a close below the USD 26,500 support could push the price further down. The next support is $26,000.
Technical indicators:
Hourly MACD – The MACD is now losing pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Major support levels – USD 26,550, followed by USD 26,500.
Major resistance levels – $27,200, $27,400 and $27,500.