The price of Bitcoin is currently facing difficulties in surpassing the resistance level of $27,500. However, there is a possibility of another upward movement if it manages to maintain its position above the support level of $27,000.
The price of Bitcoin continues to face challenges in surpassing the key levels of $27,400 and $27,500. Currently, the price of bitcoin trading is above $26,700, and the 100 hourly Simple Moving Average, indicating some stability. On the hourly chart of the BTC/USD pair, there was a notable breakthrough of a significant bearish trend line with resistance near $27,140.
The data feed is sourced from Kraken. If the price of Bitcoin manages to sustain its position above the pivotal level of $26,500, there is a possibility of initiating a fresh upward movement.
The Price of Bitcoin has Returned to Test a Support Level
The price of Bitcoin initiated a notable increase starting from the $26,500 zone. It successfully surpassed the resistance levels of $26,800 and $27,000, which also triggered positive movements in Ethereum.
During this upward movement, an important bearish trend line with resistance near $27,100 was broken on the BTC/USD pair’s hourly chart. The pair briefly exceeded the $27,400 resistance level but failed to sustain further upside momentum. The price reached a high near $27,511 and has since started to decline.
The price of Bitcoin’s downward movement led to a breach of the 23.6% Fibonacci retracement level, calculated from the swing low of $26,530 to the high of $27,510.
Currently, the Bitcoin price is trading above $26,700 and the 100 hourly Simple Moving Average, while also testing the previously broken trend line at $27,150.
On the upside, the immediate resistance level is around $27,300, followed by a major resistance at $27,400. The primary resistance still remains near $27,500. If the price manages to close above the resistance zone of $27,500, it could potentially move toward the next resistance at $28,200.
The upcoming significant hurdle for Bitcoin is around the $28,500 mark. If the price manages to surpass this resistance, it could potentially trigger a robust upward movement toward the $29,200 resistance level. Further gains might even propel the price toward the $30,000 mark.
Read More: Bitcoin Price Reclaims $27,500 Mark: $27,000 Breakthrough Signals a Bullish Wave
Is Bitcoin facing a new Decline?
On the other hand, if the price of Bitcoin fails to break through the $27,500 resistance, it could experience another decline. Immediate support on the downside is expected around the $26,500 level and the 100-hourly Simple Moving Average.
Additionally, the 50% Fibonacci retracement level, calculated from the swing low of $26,500 to the high of $27,500, coincides with the $27,000 support level. The subsequent major support is located near the $26,500 to $26,800 zone, and a breach below that may lead to a revisit of the $26,500 support level. In the near term, further losses could potentially drive the price of Bitcoin towards the $26,000 level.
Here are Some Technical Indicators for Bitcoin
Key support levels to watch are $27,000, followed by $26,500.
Hourly RSI (Relative Strength Index) – The RSI for the BTC/USD pair is currently hovering around the 50 levels, indicating a neutral stance.
Hourly MACD – The Moving Average Convergence Divergence (MACD) indicator on the hourly chart is showing a slowdown in bullish momentum.
On the upside, significant resistance levels are located at $27,300, $27,400, and $27,500.
Did you find this crypto market analysis helpful? Stay updated about the latest crypto market update.
Please continue to follow my analysis and feel free to ask any queries, you may have. I am here to assist you.
TradingView: @FarmanBangashh
