Bitcoin against the US Dollar (BTC/USD pair) has formed strong support at US$26,000 and is looking forward to a fresh momentum towards the US$30,000 level. With this gaining momentum, the BTC price will likely break the major resistances at US$28,000 and US$28,400 levels.
Bitcoin breaks above the Key US$27,300-Level
After achieving the all-time high at US$28,353.20 (data feed on Kraken), the Bitcoin price witnessed a short-term downside correction to a low at US$25,850.00. However, it received support near the US$26,000 zone. A double bottom pattern near the US$25,800 level formed, giving rise to a fresh leash of upward momentum.
With the renewed momentum, the BTC/USD pair broke above two major resistances at the US$26,400 and US$27,000 levels and moved into a positive zone. A clear break above the key $27,300 resistance zone happened, leading the BTC price against the US Dollar to settle above the 100-hourly SMA (Simple Moving Average). On the BTC/USD pair’s hourly chart, a break is witnessed above a key bearish trend line near the US$26,800 level.
There are many other positive signals for the Bitcoin price to keep the momentum going towards the major US$30,000 psychological level. BTC price has moved above the 61.8% Fibonacci retracement level of the downward correction from the swing high at US$28,389 to low at US$25,782.
At press time, Kraken’s data feed shows the BTC/USD price to hover around $27,910.40 (+6.82% in the last 24-hours). A lot of positive signs can be seen above the support levels at US$27,300 and US$27,500.
The Bitcoin price is rising smoothly and is trading above the 76.4% Fibonacci retracement level of the downward movement from the swing high at US$28,389 to the low at US$25,782. Above the resistance zone around US$28,000, there are high chances of a sustained upward movement. Any upward break of the US$28k-level is likely to open up the path towards the all-time high BTC price level against the US Dollar at the US$28,400-level, which could even clear the path towards US$30,000.
What are the Downward Support Levels?
In case, the BTC/USD pair couldn’t hold the key support level and a downward price correction starts, the major support levels you should keep an eye on are the recent breakout zone near US$27,300 and the $27,200 levels. If these support levels break then the next major support is near the US$26,500 level as well as the 100 hourly SMA. If Bitcoin couldn’t hold on to these supports and falls further downwards then the major support zone in the coming sessions will be US$26,000.
While trading Bitcoin against the US Dollar, also take a closer look at the other technical indicators such as the Hourly MACD and Hourly RSI. While the Moving Average Convergence Divergence is gaining momentum in the bullish zone, RSI is currently well above the 50-level.