Bitcoin Price Looks Set To Start Recovery Toward $27K, Here’s Why
Bitcoin price is forming a base above the $25,500 support. BTC could start a fresh increase if it clears the key $26,200 resistance zone in the near term.
Bitcoin is holding the key $25,500 support zone and consolidating. The price is trading above $26,000 and the 100 hourly Simple moving average. There is a major rising channel forming with support near $25,750 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair could start a recovery wave if there is a move above the $26,200 resistance.Bitcoin Price Could Soon Recover
Bitcoin price is still trading above the $25,400 support zone. BTC remained supported after the US CPI report was released which showed the inflation eased to 4% in May 2023.
The price is slowly moving higher above the $25,800 level. It cleared the 50% Fib retracement level of the recent drop from the $26,260 swing high to the $25,713 low. Besides, there is a major rising channel forming with support near $25,750 on the hourly chart of the BTC/USD pair.
Bitcoin price is now trading above $26,000 and the 100 hourly Simple moving average. It seems to be facing resistance near the $26,150 level or the 76.4% Fib retracement level of the recent drop from the $26,260 swing high to the $25,713 low.
The first major resistance is near the $26,200 level. A clear move above the $26,200 resistance might start a fresh increase. The next major resistance is near the $26,775 level, above which the bulls might send BTC toward the $27,000 resistance zone.
Source: BTCUSD on TradingView.com
The next key resistance is near the $27,200 level, above which Bitcoin might rise toward the $27,500 resistance. Any more gains above the $27,500 resistance zone might send the price toward the $28,000 resistance zone.
Fresh Decline in BTC?
If Bitcoin’s price fails to clear the $26,200 resistance, it could start another decline. Immediate support on the downside is near the $25,780 level and the channel zone.
The next major support is near the $25,500 level, below which the price might struggle to remain in a positive zone. In the stated case, the price could drop toward the $25,000 support in the near term.
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 above the 50 level.
Major Support Levels – $25,750, followed by $25,500.
Major Resistance Levels – $26,150, $26,200, and $26,775.