Bitcoin Price Experiences Technical Correction, Here’s What Could Drive It Back to $28K
Bitcoin’s price recently made an upward move, testing the $27,500 resistance level. However, it is currently undergoing a corrective phase, with the potential for another upswing as long as it remains above $26,500.
Bitcoin is maintaining its gains above the crucial $26,500 support level. The price is currently trading above $26,550 and the 100-hourly Simple Moving Average (SMA). A significant bullish trend line is taking shape, offering support around $26,600 on the hourly chart of the BTC/USD pair (data sourced from Kraken). As long as Bitcoin remains above the $26,500 support zone, there is the possibility of another price increase.
Bitcoin Price Aims for Further Upside
Bitcoin’s price managed to stay in a positive zone after surpassing the $26,200 resistance level. It initiated a fresh upward movement, successfully clearing the $26,500 resistance zone.
The price experienced a robust push above $27,000 but encountered resistance around $27,500. It reached a peak near $27,468 before undergoing a recent corrective phase. This correction led to a drop below the $27,000 level and even breached the 50% Fibonacci retracement level of the upward move from the $26,412 swing low to the $27,468 high.
At present, Bitcoin is trading above $26,550 and the 100-hourly Simple Moving Average. Additionally, there is a crucial bullish trend line forming, providing support at approximately $26,600 on the BTC/USD hourly chart.
The price is presently holding above the 76.4% Fibonacci retracement level of the upward move from the $26,412 swing low to the $27,468 high. It is consolidating its gains and might have the potential for another upward move. Immediate resistance on the upside is in the vicinity of the $26,950 level.
The initial significant resistance level lies near $27,500, and a break above this could trigger further price acceleration. The subsequent key resistance might be around the $28,200 level. If there is a clear move beyond the $28,200 resistance, the price could target the $29,000 resistance level.
Potential for Downside Movements in BTC?
Should Bitcoin fail to initiate another upward move above the $26,950 resistance, it might continue on a downward trajectory. The immediate support on the downside is located around the $26,600 level and the trend line.
The subsequent major support level is at approximately $26,500. If there is a downside break and a close below the $26,500 level, the price may head towards the next support at $26,000.
Technical Indicators:
Hourly MACD – The MACD is presently slowing down within the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently hovering around the 50 level.
Key Support Levels – $26,600, followed by $26,500.
Key Resistance Levels – $26,950, $27,200, and $27,500.
