Bitcoin Price Holds Support and Might Soon Aim Fresh Increase Above $28K

2023-05-17 09:43:30

Bitcoin price is holding support near $26,750. BTC might start a fresh increase if there is a clear move above the $27,550 resistance zone.

Bitcoin is holding the key support at $26,750 and $26,600.
The price is trading above $26,800 and the 100 hourly Simple moving average.
There was a break above a key bearish trend line with resistance near $27,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could start a fresh increase if it stays above $26,750 and the 100 hourly SMA.

Bitcoin Price Aims Higher

Bitcoin price started a minor downside correction after it failed to clear the $27,700 and $27,800 resistance levels. BTC formed a high near $27,677 before it corrected lower.

There was a move below the $27,400 level. The price declined below the 23.6% Fib retracement level of the upward move from the $25,828 swing low to the $27,677 high. The price tested a major support near the $26,800 level and the 100 hourly Simple moving average.

Bitcoin price is now trading above $26,600 and the 100 hourly Simple moving average. There was a break above a key bearish trend line with resistance near $27,000 on the hourly chart of the BTC/USD pair. Immediate resistance is now forming near the $27,250 level. The next major resistance is near the $27,550 level.

Source: BTCUSD on TradingView.com

A close above the $27,550 resistance might start a decent increase. The next key resistance is near $28,000, above which the price might rise toward the $28,400 resistance. Any more gains might send the price toward the $28,800 level.

Fresh Decline in BTC?

If Bitcoin’s price fails to clear the $27,550 resistance, it could start a fresh decline. Immediate support on the downside is near the $27,000 level and the 100 hourly SMA.

The next major support is near the $26,750 zone or the 50% Fib retracement level of the upward move from the $25,828 swing low to the $27,677 high, below which the price might start a steady decline. In the stated case, it could revisit the $26,200 level. Any more losses might take Bitcoin toward the $26,000 level in the near term.

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.

Major Support Levels – $26,750, followed by $26,200.

Major Resistance Levels – $27,250, $27,550, and $28,300.

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