Bitcoin Consolidates Above $27,250 Zone
The price of Bitcoin is currently holding onto its gains and consolidating above the $27,250 zone. However, it is trading below $27,800 and the 100 hourly Simple Moving Average (SMA). On the BTC/USD hourly chart from Kraken, there is a key bearish trend line forming with resistance near $27,780. This suggests that the pair could face difficulties in clearing the $27,800 and $28,500 resistance levels in the near future.
Bitcoin Price Faces Key Hurdles
Despite initially increasing above the $27,800 resistance level, Bitcoin failed to stay in a positive zone and revisit the $28,500 resistance zone. As a result, there was a steady decline below the $28,000 level and the price dropped below $27,500. However, bulls were active above the $27,250 support zone and managed to form a low near $27,275. The price is now rising and has climbed above the 23.6% Fibonacci retracement level of the recent decline. Nonetheless, it is still trading below $27,800 and the 100 hourly SMA.
There is a key bearish trend line forming with resistance near $27,780 on the BTC/USD hourly chart. The immediate resistance on the upside is near this trend line as well as the $27,780 level. It also aligns with the 50% Fibonacci retracement level of the recent decline. The next major resistance levels are at $28,100 and $28,250 before Bitcoin potentially tests $28,500. A close above this resistance level could initiate another increase towards the $29,200 resistance and even potentially push for a move towards $30,000.
Another Drop In BTC?
If Bitcoin fails to break above the $27,780 resistance level, there is a possibility of a fresh decline. The immediate support on the downside is near $27,500, followed by the major support at $27,250. A break and close below this support level might trigger strong bearish movements, with the next support sitting at $26,200.
Technical indicators show that the hourly MACD is gaining momentum in the bullish zone, while the hourly RSI (Relative Strength Index) for BTC/USD is now above the 50 level.
Source: BTCUSD on TradingView.com
Hot Take: Bitcoin Faces Resistance at Key Levels
Bitcoin is currently facing key hurdles as it tries to maintain its gains and break through resistance levels. Although it initially showed signs of increase, it failed to sustain positive momentum and revisit higher resistance zones. The price is now consolidating above the $27,250 zone but trading below the 100 hourly SMA. With a key bearish trend line forming and resistance near $27,780, Bitcoin may struggle to clear the resistance levels at $27,800 and $28,500 in the near future. However, if it manages to surpass these levels, it could potentially lead to further gains towards $29,200 and beyond.
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