Bitcoin price cuts losses but remains in range, which could trigger another rally

Bitcoin price trimmed all losses and climbed above $28,000. BTC needs to clear the $28,500 resistance zone to start a steady rise in the coming sessions.

• Bitcoin is moving higher above the $28,000 resistance.
• The price is trading above $28,000 and the 100 hourly simple moving average.
• A continuous bullish trend line is forming with support near $28,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could rise if there is a close above the $28,400 resistance zone.

Bitcoin Price Eyes Fresh Rally

Bitcoin price started a major downside correction after the Fed raised interest rates from 4.75% to 5%. BTC dipped below the $27,500 level before the bulls emerged near the $26,600 zone.

A low was formed near $26,623 and the price started a new rally. It trimmed all the losses and climbed above the $27,500 resistance zone. There was a clear move above the $28,000 resistance, but the bears were again active near the $28,500 zone.

A high is formed near $28,798 and the price is now correcting lower. There was a move below the 23.6% Fib retracement level of the last wave from the $26,623 swing to the $28,798 high.

Bitcoin price is now trading above $28,000 and the 100 hourly simple moving average. A continuous bullish trend line is also forming with support near $28,000 on the hourly chart of the BTC/USD pair. On the upside, an immediate resistance is near the $28,500 level.

Source: BTCUSD on TradingView.com

The next major resistance is near the $28,500 zone. A close above the $28,500 resistance could start another big rally. In the mentioned case, the price may rise towards the $29,500 level. Any further gains could send the price towards the $30,000 resistance zone.

Dips supported in BTC?

If the bitcoin price fails to clear the $28,500 resistance, it could start another decline. An immediate support on the downside is near the $28,000 zone and the trend line.

The next major support is near the $27,700 zone or the 50% Fib retracement level of the last wave from the $26,623 swing low to $28,798 high. Any further losses could send the price towards the $27,150 support zone. The next major support is near the $26,600 level.

Technical indicators:

Hourly MACD – MACD is now losing momentum in the bullish zone.

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

Major support levels – $28,000, followed by $27,700.

Major resistance levels – $28,500, $28,800 and $29,500.