Bitcoin price is correcting gains and is trading below $27,500. BTC must stay above the 100 hourly SMA to start a fresh increase in the near term.

  • Bitcoin struggled to climb above $27,500 and started a downside correction.

  • The price is trading above $26,600 and the 100 hourly simple moving average.

  • There is a key ascending channel forming with support near $27,000 on the hourly chart of the BTC/USD pair (data source from Kraken).

  • The pair could start a fresh increase if it stays above $26,750 and the 100 hourly SMA.

Bitcoin Price Corrects Gains

Bitcoin price climbed above the $27,200 resistance level. However, BTC struggled to clear the $27,500 resistance level and started a downside correction.

The price declined below the $27,250 level and the 23.6% Fib retracement level of the upward move from the $25,827 swing low to $27,677 high. The price is now approaching a critical support near $27,000. There is also a key ascending channel forming with support near $27,000 on the hourly chart of the BTC/USD pair.

Bitcoin price is now trading above the $26,600 level and the 100 hourly simple moving average. There is an immediate resistance forming near the $27,250 level. The next major resistance is near the $27,500 level.

A close above the $27,500 resistance could start a significant increase. The next key resistance is near $28,000, above which the price could climb towards the $28,300 resistance. Any more gains could push the price towards the $28,800 level in the coming sessions.

BTC Loses More?

If the price of bitcoin fails to stabilize above $27,000, it is likely to continue to decline. An immediate support on the downside is near the $27,000 level and the trendline of the channel.

The 100 hourly simple moving average is also below the channel support. The next major support is near the $26,750 area, below which the price might start a steady decline. In the mentioned case, it might revisit the $26,200 level. Any more losses could lead bitcoin to the $26,000 level in the near term. The next major support could be $25,800.

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 now below the 50 level.

Major Support Levels – $27,000 and then $26,750.

Major Resistance Levels – $27,250, $27,500 and $28,300.