Bitcoin Price Trims Losses But Remains In Range, What Could Trigger Fresh Rally

Bitcoin price trimmed all losses and climbed above $28,000. BTC must clear the $28,500 resistance zone to start a steady increase in the coming sessions.

• Bitcoin is moving higher above the $28,000 resistance.
• The price is trading above $28,000 and the 100 hourly simple moving average.
• There is a connecting bullish trend line forming with support near $28,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could rally if there is a close above the $28,400 resistance zone.

Bitcoin Price Eyes Fresh Rally

Bitcoin price started a major downside correction after the fed increased rates from 4.75% to 5%. BTC dived below the $27,500 level before the bulls appeared near the $26,600 zone.

A low was formed near $26,623 and the price started a fresh increase. It trimmed all its losses and climbed above the $27,500 resistance zone. There was a clear move above the $28,000 resistance, but the bears were again active near the $28,500 zone.

A high is formed near $28,798 and the price is now correcting lower. There was a move below the 23.6% Fib retracement level of the recent wave from the $26,623 swing low to $28,798 high.

Bitcoin price is now trading above $28,000 and the 100 hourly simple moving average. There is also a connecting bullish trend line forming with support near $28,000 on the hourly chart of the BTC/USD pair. On the upside, an immediate resistance is near the $28,500 level.

Source: BTCUSD on TradingView.com

The next major resistance is near the $28,500 zone. A close above the $28,500 resistance might start another major increase. In the stated case, the price could rise towards the $29,500 level. Any more gains might send the price towards the $30,000 resistance zone.

Dips Supported in BTC?

If bitcoin price fails to clear the $28,500 resistance, it could start another decline. An immediate support on the downside is near the $28,000 zone and the trend line.

The next major support is near the $27,700 zone or the 50% Fib retracement level of the recent wave from the $26,623 swing low to $28,798 high. Any more losses might send the price towards the $27,150 support zone. The next major support is near the $26,600 level.

Technical indicators:

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

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

Major Support Levels – $28,000, followed by $27,700.

Major Resistance Levels – $28,500, $28,800 and $29,500.

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