Bitcoin Price Could Resume Increase But 100 SMA Is The Key

Bitcoin price is attempting a fresh increase from the $27,200 support. BTC must clear $28,000 to start a decent increase in the near term.

• Bitcoin extended its decline below the $28,000 support zone.
• The price is trading below $28,000 and the 100 hourly Simple moving average.
• There was a break above a key bearish trend line with resistance near $27,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could start a steady increase if there is a close above the 100 hourly SMA.

Bitcoin Price Finds Support

Bitcoin price remained in a bearish zone below the $30,000 zone. BTC extended its decline and traded below the $28,000 support. Finally, it tested the $27,200 support.

A low is formed near $27,146 and the price is now consolidating losses. There was a minor recovery wave above the $27,500 level. Besides, there was a break above a key bearish trend line with resistance near $27,500 on the hourly chart of the BTC/USD pair.

Bitcoin price is now trading below $28,000 and the 100 hourly Simple moving average. It is testing the 23.6% Fib retracement level of the downward move from the $30,460 swing high to the $27,146 low.

Immediate resistance is near the $28,000 level. A close above the $28,000 resistance and the 100 hourly SMA could start a decent increase. The first major resistance is forming near the $28,500 level. The next major resistance is near the $28,800 zone.

Source: BTCUSD on TradingView.com

It is close to the 50% Fib retracement level of the downward move from the $30,460 swing high to the $27,146 low. A move above the $28,800 resistance might call for a decent increase. In the stated case, the price may perhaps revisit the $29,500 zone. Any more gains could open the doors for a test of $30,000.

Fresh Decline 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 $27,400 level.

The next major support is near the $27,200 zone. A downside break and close below the $27,200 support might push the price toward the $26,800 support. Any more losses might push Bitcoin toward $26,500.

Technical indicators:

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

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

Major Support Levels – $27,400, followed by $27,200.

Major Resistance Levels – $28,000, $28,500, and $28,800.

Source