Bitcoin price surged above $26,500 and $27,000. BTC tested the $28,000 resistance zone and is currently correcting lower towards $27,000.
- Bitcoin bounced higher and broke the $26,500 resistance zone.
- The price is above $26,500 and the 100 hourly simple moving average.
- There was a break above a key bearish trend line with resistance near $26,100 on the hourly chart of the BTC/USD pair (data feed by Kraken).
- The pair corrects gains but could find bids near $27,000 or $26,700.
Bitcoin price is regaining strength
Bitcoin price started a decent climb after news that a US court had ruled in favor of Grayscale vs. the SEC, opening the doors for ETFs. BTC gained pace and managed to clear the $26,500 resistance zone.
There was a steady increase and the price even broke the $27,500 resistance zone. Finally, the $28,000 resistance zone was tested. A high is forming near $28,150 and the price is now correcting gains. There was a slight drop below $27,800.
The price traded below the 23.6% Fibonacci retracement level of the bullish move from the swing low of $25,927 to the high of $28,150. However, Bitcoin is still trading above $26,500 and the 100 hourly simple moving average.
Source: BTCUSD on TradingView.com
If there is a renewed increase, immediate resistance is near $27,650. The first major resistance is near the $28,000 level. A clear move above $28,000 could propel the price towards $28,500. The next major resistance stands at $29,200, above which a sustained rally could occur. In the case mentioned, the price could test the $30,000 mark. Further gains could lay the foundations for a larger rally towards $31,200.
Are dips in BTC limited?
If bitcoin fails to clear the $28,000 resistance, the price could fall further. Immediate support on the downside is near $27,000.
The next major support is near $26,700 or the 61.8% Fib retracement level of the move up from the $25,927 swing low to the $28,150 high. A downside break below $26,700 could propel the price back into a bearish zone. In that case, the price could drop towards $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 above the 50 level.
Major support levels – $27,000 followed by $26,700.
Major resistance levels – $28,000, $28,500 and $29,200.
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers