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Bitcoin Price Just Saw Key Technical Correction But 100 SMA Is Still Strong
Bitcoin price is correcting gains and trading below $27,500. BTC must stay above the 100 hourly SMA to start a fresh increase in the near term.
Bitcoin Price Corrects Gains
Bitcoin price climbed higher above the $27,200 resistance zone. However, BTC struggled to clear the $27,500 resistance 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 the $27,677 high. The price is now approaching key support near $27,000. There is also a key rising channel forming with support near $27,000 on the hourly chart of the BTC/USD pair.
Bitcoin price is now trading above $26,600 and the 100 hourly Simple moving average. Immediate resistance is now forming near the $27,250 level. The next major resistance is near the $27,500 level.
Source: BTCUSD on TradingView.com
A close above the $27,500 resistance might start a decent increase. The next key resistance is near $28,000, above which the price might climb toward the $28,300 resistance. Any more gains might send the price toward the $28,800 level in the coming sessions.
More Losses in BTC?
If Bitcoin’s price fails to remain stable above $27,000, it could continue to move down. Immediate support on the downside is near the $27,000 level and the channel trend line.
The 100 hourly Simple moving average is also below the channel support. The next major support is near the $26,750 zone, 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. 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, followed by $26,750.
Major Resistance Levels – $27,250, $27,500, and $28,300.