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Bitcoin Price Indicators Show Vulnerability For Another Downward Correction

Bitcoin price is attempting a recovery wave above the $27,000 resistance. BTC could gain bullish momentum if it clears the $27,700 resistance zone.

  • Bitcoin is slowly moving up from the $26,500 support.
  • The price is trading below $27,500 and the 100 hourly simple moving average.
  • There is a key bearish trend line forming with resistance near $27,700 on the hourly chart of the BTC/USD pair (data feed by Kraken).
  • The pair could start a fresh decline if it fails to clear the $27,700 resistance zone.

Bitcoin price faces hurdle

Bitcoin price remained well bid above the $26,500 support zone. BTC formed a base and recently started a fresh surge above the $26,850 resistance zone.

There was a move above the $27,000 resistance zone. The price even surged above the 50% Fib retracement level of the key decline from the $28,240 swing high to $26,490 low. However, the bears appear to be active near the $27,500 resistance zone.

Bitcoin price is now trading below $27,500 and the 100 hourly simple moving average. There is also a key bearish trend line forming with resistance near $27,700 on the hourly chart of the BTC/USD pair.

On the upside, there is immediate resistance near $27,500 and the 100 hourly simple moving average. The next major resistance is near the $27,700 zone and the trend line. The trend line is near the 61.8% Fib retracement level of the key drop from the $28,240 swing high to $26,490 low.

Source: BTCUSD on TradingView.com

A close above the trendline resistance could send the price towards the $28,200 resistance. In the mentioned case, the price might surge higher towards the $28,800 resistance, above which the price might start a steady climb.

BTC falling again?

If bitcoin price fails to clear the $27,700 resistance, it might start another decline. Immediate support on the downside is near the $27,000 zone.

The next major support is near the $26,650 zone. A downside break below the $26,650 support could trigger bearish moves. The next major support is near $25,500, below which the bears could take control.

Technical indicators:

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

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

Key support levels – $27,000 followed by $26,650.

Major resistance levels – $27,500, $27,700 and $28,200.

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