Bitcoin price has shown strong resilience, holding its ground above the important $26,000 support zone. After establishing a solid base, BTC started a recovery wave, breaking above the $27,000 resistance level. This article explores the recent price action and key levels, which indicate the potential for further upside.
Amidst the dynamic fluctuations of the crypto market, Bitcoin has been showing promising signs by breaking a key resistance level. The break above $27,500 triggered a steady surge in the price, resulting in a gain of over 4%. As the bullish momentum continued, Bitcoin conquered the $28,000 resistance, hitting a high near $28,450. Currently, the price is consolidating its gains, trading near the 23.6% Fibonacci retracement level, which marks a healthy retracement from the recent swing low of $27,143 to a high of $28,450.
Moreover, Bitcoin is now trading comfortably above $28,000 and the 100 hourly Simple Moving Average (SMA), reinforcing the bullish sentiment. In particular, a significant bullish trend line is forming on the hourly chart of the BTC/USD pair, with a support level near $27,700. This trend line further supports the positive outlook for Bitcoin price in the near future.
Looking ahead, immediate resistance lies around $28,320, followed by a major hurdle near $28,500. If price manages to break above this resistance zone, it could pave the way for a rally towards the $29,200 level. Furthermore, breaking the $29,500 threshold could open the door for a spike towards the $30,000 psychological resistance. In case of a sustained bullish momentum, the price might even test the $31,200 resistance level.
However, failure to clear the $28,500 resistance zone could trigger a downside correction. In such a scenario, immediate support is around $28,000. A break of this support could lead to a test of the $27,700 zone, which also coincides with the 50% Fibonacci retracement level. If selling pressure increases, Bitcoin price could retest the $27,500 support, with further losses potentially pushing it towards the $27,200 level.
Bitcoin’s recent price action, which surpassed a crucial resistance level, indicates a favorable environment for an upside move. Traders should closely monitor key levels for potential opportunities in the market.