Bitcoin Price Fails Again But This Support Could Spark Fresh Increase

2023-05-24 03:20:42

Bitcoin price is struggling to clear the $27,500 resistance. BTC could attempt another increase if it stays above the $27,000 support.

Bitcoin is still struggling to gain pace above the $27,400 and $27,500 levels.
The price is trading above $27,000 and the 100 hourly Simple moving average.
There was a break above a major bearish trend line with resistance near $27,140 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could start a fresh increase if it stays above the $27,000 pivot level.

Bitcoin Price Revisits Support

Bitcoin price started a decent increase from the $26,550 zone. BTC was able to clear the $26,850 and $27,000 resistance levels. It also sparked some positive moves in Ethereum.

During the increase, there was a break above a major bearish trend line with resistance near $27,140 on the hourly chart of the BTC/USD pair. The pair spiked above the $27,400 resistance but there was no upside continuation. A high is formed near $27,511 and the price is now moving lower.

There was a move below the 23.6% Fib retracement level of the upward move from the $26,536 swing low to the $27,511 high. Bitcoin price is now trading above $27,000 and the 100 hourly Simple moving average. It is also testing the broken trend line at $27,150.

Immediate resistance on the upside is near the $27,280 level. The next major resistance is near the $27,400 level. The main resistance is still near $27,500. A close above the $27,500 resistance zone might send the price toward the $28,200 resistance zone.

Source: BTCUSD on TradingView.com

The next key resistance is near $28,500, above which the price might start a strong increase toward the $29,200 resistance. Any more gains might send the price toward the $30,000 level.

Fresh Decline in BTC?

If Bitcoin’s price fails to clear the $27,500 resistance, it could start another decline. Immediate support on the downside is near the $27,000 level and the 100 hourly Simple moving average.

The 50% Fib retracement level of the upward move from the $26,536 swing low to the $27,511 high is also near $27,000. The next major support is near the $26,850 zone, below which the price might revisit the $26,550 support. Any more losses might take Bitcoin toward the $26,000 level in the near term.

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 near the 50 level.

Major Support Levels – $27,000, followed by $26,550.

Major Resistance Levels – $27,280, $27,400, and $27,500.

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