Bitcoin Price Corrects Sharply But This Support Might Spark Another Increase

Bitcoin price rallied and even spiked above the $26,000 resistance. BTC corrected lower, but the bulls are active above the $24,000 support zone.

• Bitcoin started a strong increase above the $24,500 resistance zone.
• The price is trading above $24,000 and the 100 hourly simple moving average.
• There is a key bullish trend line forming with support near $24,750 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 $24,000 support zone.

Bitcoin Price Rejects $26.5K

Bitcoin price started a strong increase above the $24,000 resistance zone. BTC even surpassed the $25,000 resistance to move further into a positive zone.

Finally, the price spiked above the $26,000 and $26,200 resistance levels. A high was formed near $26,526 before there was a sharp downside correction. The price declined heavily below the $26,000 and $25,500 levels. It traded close to the $24,000 support zone.

A low is formed near $24,051 and the price is now rising. Bitcoin price is trading above $24,000 and the 100 hourly simple moving average. There is also a key bullish trend line forming with support near $24,750 on the hourly chart of the BTC/USD pair.

An immediate resistance is near the $25,300 level. It is near the 50% Fib retracement level of the recent decline from the $26,526 swing high to $24,051 low.

Source: BTCUSD on TradingView.com

The next major resistance is near the $25,600 zone. It is near the 61.8% Fib retracement level of the recent decline from the $26,526 swing high to $24,051 low. A close above the $25,600 resistance might start a fresh increase towards the $26,000 resistance. The next key resistance is near the $26,500 zone, above which the price might gain bullish momentum and test $27,500.

Dips Limited in BTC?

If bitcoin price fails to clear the $25,300 resistance, it could start another decline. An immediate support on the downside is near the $24,750 zone and the trend line.

The next major support is near the $24,000 zone, below which the price gain bearish momentum. The next major support is near the $23,200 level. Any more losses might send the price towards the $22,500 level and the 100 hourly simple moving average.

Technical indicators:

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

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

Major Support Levels – $24,750, followed by $24,000.

Major Resistance Levels – $25,300, $25,600 and $26,200.

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