Key Points:
- Bitcoin’s price surpasses critical resistance levels.
- Factors driving the current bullish momentum.
- Analysis of potential future price movements.
Bitcoin’s price is on the rise, surpassing the critical $26,700 resistance level. As it consolidates above $26,800, there are signs that the rally may be far from over, with a potential breakthrough of the $27,200 resistance on the horizon.
Bitcoin’s upward momentum gained traction, breaching both the $26,500 and $26,700 resistance thresholds.
Currently, the price is maintaining its position above $26,700 and is comfortably riding the 100-hourly Simple Moving Average.
On the hourly BTC/USD chart (data sourced from Kraken), a significant bullish trend line is emerging, offering support in the vicinity of $26,800.
There is a strong possibility that the BTC/USD pair may surge higher, targeting the $27,200 resistance area.
Bitcoin’s Ascent Continues
Bitcoin’s price demonstrated stability above the $26,000 support range, establishing a solid foundation for a gradual ascent above the $26,500 resistance area.
Ultimately, the bulls succeeded in driving the price above the critical $26,700 resistance level, even briefly breaching the $27,200 mark. The highest point reached was approximately $27,312, and the price is now consolidating its gains. During this consolidation phase, there was a minor retracement below the 23.6% Fibonacci retracement level, calculated from the low swing point at $26,100 to the high at $27,312.
Bitcoin is presently trading above $26,700 and is being supported by the 100-hourly Simple Moving Average. Furthermore, the emerging bullish trend line, offering support around $26,800 on the BTC/USD hourly chart, adds to the positive outlook.
The immediate resistance to watch on the upside is located near the $27,200 mark. Beyond that, the next crucial resistance level is anticipated to be around $27,500. If the price manages to close above this $27,500 resistance, it may pave the way for further upward movement. In such a scenario, Bitcoin’s price could target the $28,200 resistance, and potential gains might even push it toward the $28,500 level.
Are Downturns Limited for BTC?
However, if Bitcoin struggles to sustain momentum above the $27,200 resistance, there is a possibility of a downward correction. The initial support to monitor on the downside can be found around the $26,800 level, in conjunction with the aforementioned bullish trend line.
The subsequent significant support level lies near $26,500 or the 50% Fibonacci retracement level of the upward journey from the $26,100 swing low to the $27,312 high. Should the price experience a downside break and close below the $26,500 threshold, it could signal the onset of a more substantial decline. The next support zone in this scenario would be around $26,000, and if losses persist, a test of $25,400 might become a possibility.
Technical Indicators:
Hourly MACD: The MACD is currently exhibiting a slowdown in its bullish momentum.
Hourly RSI (Relative Strength Index): The RSI for BTC/USD is currently positioned above the 50 level.
Major Support Levels: $26,800, followed by $26,500.
Major Resistance Levels: $27,200, $27,500, and $28,000.
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Disclaimer: Please note that the viewpoints and perspectives expressed by the author, as well as any individuals referenced in this article, are intended solely for informational purposes. They should not be construed as financial or investment advice. It’s important to acknowledge that investing in or trading cryptoassets carries inherent financial risks.
