Bitcoin Price Trims Losses But Remains In Range, What Could Trigger Fresh Rally
Bitcoin price trimmed all losses and climbed above $28,000. BTC must clear the $28,500 resistance zone to start a steady increase in the coming sessions.
- Bitcoin is moving higher above the $28,000 resistance.
- The price is trading above $28,000 and the 100 hourly simple moving average.
- There is a connecting bullish trend line forming with support near $28,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could rally if there is a close above the $28,400 resistance zone.
Bitcoin Price Eyes Fresh Rally
Bitcoin price started a major downside correction after the fed increased rates from 4.75% to 5%. BTC dived below the $27,500 level before the bulls appeared near the $26,600 zone.
A low was formed near $26,623 and the price started a fresh increase. It trimmed all its losses and climbed above the $27,500 resistance zone. There was a clear move above the $28,000 resistance, but the bears were again active near the $28,500 zone.
A high is formed near $28,798 and the price is now correcting lower. There was a move below the 23.6% Fib retracement level of the recent wave from the $26,623 swing low to $28,798 high.
Bitcoin price is now trading above $28,000 and the 100 hourly simple moving average. There is also a connecting bullish trend line forming with support near $28,000 on the hourly chart of the BTC/USD pair. On the upside, an immediate resistance is near the $28,500 level.
Source: BTCUSD on TradingView.com
The next major resistance is near the $28,500 zone. A close above the $28,500 resistance might start another major increase. In the stated case, the price could rise towards the $29,500 level. Any more gains might send the price towards the $30,000 resistance zone.
Dips Supported in BTC?
If bitcoin price fails to clear the $28,500 resistance, it could start another decline. An immediate support on the downside is near the $28,000 zone and the trend line.
The next major support is near the $27,700 zone or the 50% Fib retracement level of the recent wave from the $26,623 swing low to $28,798 high. Any more losses might send the price towards the $27,150 support zone. The next major support is near the $26,600 level.
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 above the 50 level.
Major Support Levels – $28,000, followed by $27,700.
Major Resistance Levels – $28,500, $28,800 and $29,500.
