TA: Bitcoin Regains Strength, Why BTC Could Retest $28K

Bitcoin price started a downside correction from the $28,360 high against the US Dollar. BTC remained well bid above $26K, and it is likely to resume higher towards $28K.

• Bitcoin is showing a lot of positive signs above the $26,000 support zone.
• The price is currently trading above the $26,500 support and the 100 hourly simple moving average.
• There was a break above a major contracting triangle with resistance near $26,800 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair is likely to continue higher towards the $28,000 and $28,400 resistance levels.

Bitcoin Price is Showing Bullish Signs

In the past few days, there was a strong increase in bitcoin price above the $25,000 resistance. BTC even surged above the $26,500 and $27,000 resistance levels. Finally, the price surged above the $28,000 level and settled well above the 100 hourly simple moving average.

A new all-time high was formed near $28,360 before the price started a downside correction. It traded sharply below the $27,000 level. There was also a break below the 50% Fib retracement level of the upward move from the $24,532 swing low to $28,361 high.

Source: BTCUSD on TradingView.com

However, the bulls were active around the $26,000 support level. The 61.8% Fib retracement level of the upward move from the $24,532 swing low to $28,361 high also acted as a strong support.

Bitcoin price started a fresh increase above the $26,500 resistance. There was also a break above a major contracting triangle with resistance near $26,800 on the hourly chart of the BTC/USD pair. The pair is now trading above the $27,000 level.

An initial resistance on the upside is near the $27,275 level. A clear break above the $27,275 resistance could open the doors for a fresh run towards the $28,000 and $28,400 levels in the near term.

Fresh Drip in BTC?

If bitcoin fails to clear the $27,275 resistance level, it could correct lower. An initial support on the downside is near the $26,800 zone and the broken triangle trend line.

The first major support is near the $26,500 level. The main support is still near the $26,000 level, below which there is a risk of a sustained downward move in the coming sessions.

Technical indicators:

Hourly MACD – The MACD is gaining momentum in the bullish zone.

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

Major Support Levels – $26,500, followed by $26,000.

Major Resistance Levels – $27,275, $28,000 and $28,400.

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