Bitcoin price undergoes technical correction, can bulls recover?

The price of Bitcoin is currently correcting gains from $28,400. In order for Bitcoin to start a fresh increase in the near term, it must stay above the $27,500 support. Bitcoin is correcting gains below the $28,000 support zone and the price is currently trading above $27,500 and the 100 hourly Simple moving average. However, there was a break below a major bullish trend line with support near $27,720 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair could start a fresh increase if the bulls manage to protect the $27,500 support.

Bitcoin price started a decent increase above the $28,000 resistance zone, but struggled to clear the $28,400 and $28,500 resistance levels. A high was formed near $28,450 and the price started a downside correction. There was a move below the $28,000 support zone, and the price declined below the 50% Fib retracement level of the upward move from the $27,142 swing low to the $28,450 high. Besides, there was a break below a major bullish trend line with support near $27,720 on the hourly chart of the BTC/USD pair. However, Bitcoin price is still trading above $27,500 and the 100 hourly Simple moving average.

Bitcoin is finding bids near the 61.8% Fib retracement level of the upward move from the $27,142 swing low to the $28,450 high. Immediate resistance on the upside is near the $27,800 level, and the next major resistance is near the $28,000 level. An upside break above $28,000 might send the price toward the main resistance at $28,500. A close above the $28,500 resistance zone might start a strong increase toward the $29,200 resistance zone. The next key resistance is near $29,400, above which the price might rise toward the $30,000 resistance.

If Bitcoin’s price fails to clear the $28,000 resistance, it could continue to move down. Immediate support on the downside is near the $27,580 level, and the next major support is near the $27,500 zone, below which the price might gain bearish momentum. In that case, the price could decline toward the $27,150 support and the 100 hourly Simple moving average.

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Technical indicators show that the hourly MACD is now losing pace in the bearish zone, while the hourly RSI (Relative Strength Index) for BTC/USD is above the 50 level. The major support levels are $27,580, followed by $27,500, and the major resistance levels are $28,000, $28,400, and $28,500.

Source: BTCUSD on TradingView.com.