Bitcoin Price Could Resume Increase But 100 SMA Is The Key

Aayush Jindal

2 years ago

2 mins read

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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.

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

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