Bitcoin price is showing positive signs as it holds gains above the $27,450 zone. The cryptocurrency is currently trading above $27,800 and the 100 hourly Simple Moving Average (SMA). However, there is a short-term declining channel forming with resistance near $27,980 on the BTC/USD hourly chart from Kraken. Despite this, Bitcoin could potentially revisit the $28,500 resistance zone in the near term.
Bitcoin started a downside correction after failing to clear the $28,500 resistance zone. As a result, the price declined below $28,000 and tested the support zone at $27,200. However, Bitcoin soon experienced a rise and moved above the $27,400 and $27,500 resistance levels. The price formed a high around $28,284 and is currently consolidating gains below the 23.6% Fibonacci retracement level. It is worth noting that Bitcoin is now trading above $27,800 and the 100 hourly SMA, while testing the $28,000 resistance zone.
Immediate resistance on the upside lies near the $28,000 level, with the key resistance at $28,500. If Bitcoin successfully closes above the $28,500 resistance, it could start another upward trend. This scenario could potentially lead to a rise towards the $29,200 resistance level, with the possibility of further gains pushing the price towards $30,000.
If Bitcoin fails to continue its ascent above the $28,000 resistance, there is a chance of a fresh decline. Immediate support on the downside can be found near the $27,800 level and the 100 hourly SMA. However, the main support is forming near the $27,200 level. A break and close below this level might push the price further down towards $26,650 in the near term. Another support level to keep an eye on is $26,200.
The hourly MACD (Moving Average Convergence Divergence) for BTC/USD is currently gaining pace in the bullish zone. Additionally, the hourly RSI (Relative Strength Index) for the pair is above the 50 level. These indicators suggest a positive outlook for Bitcoin in the short term.
Bitcoin is currently holding gains above the $27,450 zone and showing positive signs. There is a potential for an upward surge towards the $28,500 resistance level if Bitcoin successfully clears the $28,000 resistance. However, failure to surpass this level could trigger a downside correction. Traders should closely monitor support levels at $27,200 and $26,650, as well as resistance levels at $28,000 and $29,200. The current technical indicators indicate a bullish momentum for Bitcoin, but market conditions can rapidly change.
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