Bitcoin price approaching crucial move, 100 SMA important

The price of Bitcoin is currently consolidating above the support level of $27,500. Unless there is a clear move and close below this level, BTC could potentially start a fresh increase.

  • Bitcoin is still holding the key support zone of $27,500.
  • The price is currently trading above $27,550 and the 100 hourly Simple Moving Average.
  • There is a key bearish trend line forming with resistance near $27,850 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • If there is a break above the $28,000 resistance zone, the pair could potentially start a fresh increase.

Bitcoin Price Holds Support

The price of Bitcoin started a downside correction after failing to clear the $28,500 resistance zone. BTC moved below the $28,200 and $28,000 levels.

However, the bulls were active near the $27,500 support and there was a drop below the $27,800 level. A low was formed near $27,559 and the price is now consolidating. There was already a test of the 50% Fib retracement level of the recent decline from the $28,045 swing high to the $27,559 low.

The price of Bitcoin is now trading above $27,550 and the 100 hourly Simple Moving Average. There is also a key bearish trend line forming with resistance near $27,850 on the hourly chart of the BTC/USD pair.

Immediate resistance on the upside is near the $27,850 level and the trend line. The next major resistance is near the $28,000 level or the 76.4% Fib retracement level of the recent decline from the $28,045 swing high to the $27,559 low.

Source: BTCUSD on TradingView.com

An upside break and close above $28,000 could potentially start a steady increase towards $28,500. If the bulls manage to clear the $28,500 resistance zone, the price might rise towards the $29,200 resistance zone. The next key resistance is near $29,500, above which the price might rise towards the $30,000 resistance.

Downside Break in BTC?

If Bitcoin’s price fails to clear the $28,000 resistance, it could continue to move down. Immediate support on the downside is near the $27,550 level.

The next major support is near the $27,500 zone and the 100 hourly SMA, below which the price might start a steady decline. In this case, the price could drop towards the $27,000 support.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is below the 50 level.

Major Support Levels – $27,550, followed by $27,500.

Major Resistance Levels – $28,000, $28,400, and $28,500.

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