Bitcoin price is regaining traction, but key resistance remains intact

Bitcoin price started another rally above the $28,000 resistance. BTC needs to clear the $28,500 and $28,800 resistance levels to continue higher.

• Bitcoin climbed higher and was able to test the $28,550 resistance zone.
• The price is trading above $28,200 and the 100-hour Simple Moving Average.
• There was a break above a major bearish trend line with resistance near $28,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair can extend the rally if it clears the $28,550 resistance level.

Bitcoin price clears resistance

Bitcoin price remained well bid above the $27,700 support zone. BTC formed a base and was able to climb again above the $28,000 resistance zone.

There was a clear move above the $28,200 resistance zone and the 100-hour Simple Moving Average. Also, there was a break above a major bearish trend line with resistance near $28,000 on the hourly chart of the BTC/USD pair.

The pair tested the resistance zone at $28,550. A high is formed near $28,548 and the price is now correcting lower. There was a move below the 23.6% Fib retracement level of the upward move from the $27,812 swing low to the $28,548 high.

However, Bitcoin’s price is now trading above $28,200 and the 100-hour Simple Moving Average. Immediate resistance is near the $28,450 level. The next major resistance is near the $28,550 zone. A close above the $28,550 resistance could push the price higher towards the range resistance.

Source: BTCUSD on TradingView.com

The next key resistance is near the $28,800 level, above which the price could rise towards the $29,500 level. Any further gains may require a test of the $30,000 resistance zone.

New decline in BTC?

If Bitcoin’s price fails to clear the $28,550 resistance, it could start another decline. Immediate support on the downside is near the $28,250 level.

The next major support is near the $28,200 zone and the 50% Fib retracement level of the upward move from the $27,812 swing low to $28,548 high. A downside break and close below the $28,200 support could push the price back towards $27,700. In the indicated case, the price might drop towards the $27,200 support zone.

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 – $28,200, followed by $27,770.

Major resistance levels – $28,550, $28,800 and $29,500.